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pduvin pduvin
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6 years ago
Comics Plus has a current production level of 200,000 comics per month. Unit costs at this level are:

Direct materials   $0.125
Direct labour   0.200
Variable overhead   0.075
Fixed overhead   0.100
Marketing - Fixed   0.100
Marketing/distribution - Variable   0.200

Current monthly sales are 180,000 units. Printers Ltd. has contacted Comics Plus about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order, and variable marketing/distributing costs would not be incurred on the special order.

What is Comics Plus' change in profits if the order is accepted?
A) $6,000 increase
B) $6,000 decrease
C) $7,500 increase
D) $9,000 increase
E) $3,000 increase
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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pachopacho
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