Top Posters
Since Sunday
I
3
p
2
w
2
y
2
J
2
Q
2
r
2
o
2
e
2
j
2
d
2
T
2
New Topic  
Heybonita Heybonita
wrote...
Posts: 171
Rep: 0 0
A year ago

Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows:

Direct materials$ 22.50
Direct labor$ 7.50
Variable manufacturing overhead$ 1.70
Fixed manufacturing overhead$ 19.00
Variable selling & administrative expense$ 2.70
Fixed selling & administrative expense$ 8.60

The normal selling price of the product is $67.80 per unit.

An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.90 less per unit on this order than on normal sales.

Direct labor is a variable cost in this company.

Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1,600 units for regular customers. The minimum acceptable price per unit for the special order is closest to: (Round your intermediate calculations to 2 decimal places.)



▸ $62.00 per unit

▸ $50.70 per unit

▸ $67.80 per unit

▸ $50.31 per unit
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
Read 71 times
1 Reply
Replies
Answer verified by a subject expert
brendasantsbrendasants
wrote...
Posts: 137
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Heybonita Author
wrote...

A year ago
Thanks
wrote...

Yesterday
This helped my grade so much Perfect
wrote...

2 hours ago
Helped a lot
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  313 People Browsing
Show Emoticons
:):(;):P:D:|:O:?:nerd:8o:glasses::-):-(:-*O:-D>:-D:o):idea::important::help::error::warning::favorite:
Related Images
  
 1221
  
 213
  
 234
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 437

Previous poll results: What's your favorite math subject?