Author Question: Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are: ... (Read 225 times)

dmcintosh · **on:** Mar 6, 2021

Question 1

Which of the following is true of relevant information?
◦ All fixed costs are relevant.
◦ All Future revenues and expenses are relevant.
◦ Future
◦ All fixed costs are not relevant.

Question 2

Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are:

Direct materials

$6.00

Direct labor

5.00

Variable overhead

4.00

Fixed overhead

2.00

Marketing-fixed

6.00

Marketing/distribution-variable

4.60

Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Zephram Corporation about purchasing 2,500 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Zephram's change in operating profits if the one-time-only special order is accepted?
◦ $11,000 increase
◦ $31,500 increase
◦ $22,500 increase
◦ $49,000 increase

mochi09 · **Reply #1 on:** Mar 6, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 61% of students answer this correctly