The following information relates to per unit product costs…
The following information relates to per unit product costs when a company produces 100,000 units: Direct materials $26 Direct labor $12 Variable overhead $32 Fixed overhead $16 The product normally sells for $100 each. Fixed selling costs are $550,000 per year, and variable selling costs are $14 per unit sold. A customer has offered to make a special order and purchase 50,000 units for $90 each, and the company has enough capacity to produce the special order without affecting regular production or sales. If the firm produces the special order, the effect on income would be a/an [change] of [amount].
Read DetailsA company produces two products and incurs joint costs of $8…
A company produces two products and incurs joint costs of $80,000. The company is trying to determine whether the products should be sold at the split-off point or processed further, and is using the following data: If Processed Further Product Units Produced Total Sales Value at Split-Off Total Additional Costs Total Sales Value A 2,000 $12,000 $2,800 $17,500 B 5,500 $31,000 $3,500 $32,700 If all units of both products are processed further after the split-off point, total net income will [change] by [amount].
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