Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc inc. is approached by a potential customer to.

ABC Inc. is approached by a potential customer to...

60.1K

Verified Solution

Question

Accounting

image

ABC Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: - Direct materials =$130 - Direct labor =$60 - Manufacturing support =$105 - Marketing costs =$95 Fixed costs: - Manufacturing support =$175 - Marketing costs =$65 - Total costs =$630 - Markup(50%)=$315 - Targeted selling price =$945 What is the increase in operating profits if the one-time-only special order for 1,030 units is accepted for $550 a unit by ABC Company

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

1. Read Ch.19 "Section 401(k) Plan" and answer the following questions via Microsoft Word, individual homework,...

Basic Math
1.2K views

Find the volume for the solid, whose base is between the curves y=2x and y=x^2 over...

Biology
1.2K views

Which cell type is highlighted O umbrella cells O goblet cells O macula densa cells...

Physics
1.2K views

The reading of ammeter in the circuit shown in the figure is 492 492 www...

Geometry
1.2K views

The lateral surface area of cone A is exactly the lateral surface area cylinder B...

Calculus
1.2K views

Use the general slicing method to find the volume of the following solid The sold...

Algebra
1.2K views

Evaluate the Riemann sum for f(x) = 0.9 1.6 sin(2x) over the interval [0, 2]...

Accounting
1.2K views

Please assist with the question below: Computing and Recording Gain or Loss...

Accounting
1.2K views

was purchased on January 1,2015 , for he equipment was purchased on Janua vehicle, receiving...

Accounting
1.2K views

Which of the following is NOT associated with a high inventory turnover ratio? 1. A...

Accounting
1.2K views

High food cost percent does not necessarily mean less profit. Why?

Accounting
1.2K views

Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $319,500 on January...