Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units:
Direct materials $5
Direct labor 10
Variable overhead 7
Fixed overhead 9
The company has the capacity to produce 50,000 units. The product regularly sells for $50. A wholesaler has offered to pay $43 per unit for 3,000 units.
If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be a:
a.$30,000 increase.
b.$45,000 decrease.
c.$64,000 increase.
d.$21,000 decrease.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units: Direct materials $5 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Pamela was injured in an auto accident by an uninsured driver. Pamela filed a claim with her insurer, American Mutual, for $2,000 under her "uninsured motorist" coverage.
Answers (1)
In your own words define and explain ""marketing concept"" and the ""4P's."" Provide an example of a company that uses one or both approaches.
Answers (1)
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $420,000. Shipping costs totaled $15,000. Foundation work to house the centrifuge cost $8,000. An additional water line had to be run to the equipment at a cost of $3,000.
Answers (1)
Joe runs the Service Division for a car dealership. The overall dealership has profit of $10 million on sales of $100 million and costs of $90 million. Joe' s division contributed $9 million in sales and $7 million in costs.
Answers (1)
At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working, middle-class.
Answers (1)
New Questions in Business
Lakisha is a professor of economics. She is currently earning $100,000 a year as a professor. She decides to quit her job as a professor and opens a consulting firm. In order to do this, she cashes out her retirement fund of $200,000.
Answers (1)
true or false Activity cost pools are factory overhead costs initially budgeted for activities, such as machine usage, inspections, moving, production setups, and engineering activities.
Answers (1)
Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts.
Answers (1)
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine? a. 4 years. b. 6 years. c.
Answers (1)
A company purchased a delivery van for $15,500 with a salvage value of $2,300 on September 1, Year 1. It has an estimated useful life of 4 years.
Answers (1)