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Kwami Kwami
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7 years ago
Larissa's Copy Center makes copies and performs a variety of other services for local businesses and walk-in's. James Johnson is running for councilman and his campaign manager asked if Larissa's Copy Center can put together 50,000 flyers on colored paper by the next day for $.50 a flyer. Larissa's manager at first thought absolutely not because it would interfere with their regular workload and with the walk-in business and they wouldn't make any money at that price. But Larissa decided to look at the numbers before turning the job down. She felt that the job could be done after hours and she thinks that James Johnson will make a good councilman for their district.
At 15,000 copies per day, the cost per unit is as follows:

   Direct material   $.10
   Direct labor   .05
   Variable overhead   .10
   Fixed overhead   .25
      Total   $.50

REQUIRED:
a.)   Prepare a schedule which details whether Larissa's Copy Center should accept or reject this special order. (Direct labor should be calculated at time and a half).
b.)   Are there any qualitative characteristics that should be taken into account?
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
Author:
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suryoyosuryoyo
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7 years ago
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Kwami Author
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7 years ago
Very nice, you've helped tremendously

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