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Other Fields Homework Help Management Topic started by: Onxy on Feb 12, 2017



Title: The manager at the Plymouth Manufacturing Company reported a current production level of 22,000 ...
Post by: Onxy on Feb 12, 2017
The manager at the Plymouth Manufacturing Company reported a current production level of 22,000 units per month. The managerial accountant reported the following unit-level costs:

Direct materials   $0.30
Direct labor   0.45
Variable overhead   0.18
Fixed overhead   0.20
Marketing-fixed   0.20
Marketing/Distribution/Variable   0.40

The manager reported monthly sales of 20,000 units. The Salem Company contacted the manager at Plymouth Manufacturing and inquired about the purchase of 1,525 units at $2.10 per unit. The manager noted that current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred with the special order. What is the change in operating profits at Plymouth Manufacturing Company's if the special order is accepted?
A) $1,525 decrease
B) $1,525 increase
C) $1,784.25 decrease
D) $1,784.25 increase
E) There is no change in operating profits


Title: Re: The manager at the Plymouth Manufacturing Company reported a current production level of 22,000 ...
Post by: noitulove on Feb 12, 2017
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Title: Re: The manager at the Plymouth Manufacturing Company reported a current production level of 22,000 ...
Post by: Onxy on Jul 4, 2017
This subject killed me, thanks you for sharing your expertise