Author Question: Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at ... (Read 138 times)

Capo · **on:** Mar 6, 2021

Question 1

Employee morale at Dos Santos, Inc., is very high. This type of information is an example of ________.
◦ qualitative factors
◦ quantitative factors
◦ irrelevant factors
◦ financial factors

Question 2

Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are:

Direct materials

$0.26

Direct labor

0.40

Variable overhead

0.16

Fixed overhead

0.21

Marketing - fixed

0.25

Marketing/distribution - variable

0.42

Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1,550 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted?
◦ $4,929.00 increase in operating profits
◦ $4,929.00 decrease in operating profits
◦ $1,829.00 increase in operating profits
◦ $1,829.00 decrease in operating profits

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

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