Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ajax manufacturing company manufactures a product

Ajax Manufacturing Company manufactures a product that normally sells for $80 per unit. Ajax expects...

80.2K

Verified Solution

Question

Accounting

Ajax Manufacturing Company manufactures a product that normally sells for $80 per unit. Ajax expects to make and sell 80,000 units in 2014, and has capacity to produce 100,000 units. Variable costs of the products total $20 per unit, and fixed product costs total $2,400,000. A prospective new customer offers to buy 10,000 units of product for $30 per unit.

Should Ajax accept the offer?

Why or why not?

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

Statistics
1.2K views

All the procedures should be done with 5% P-value or 95% confidence interval.Some answers are approximated,...

Biology
1.2K views

What is/are the energy source(s) utilized by primary producers in the hydrothermal vents on the ocean...

Civil Engineering
1.2K views

Use LRFD and select the lightest C6 channel to be used as a tension member to...

Physics
1.2K views

INTERPRETING THE REAL LIFE STORY: Ben’s Experience My whole life I have definitely been a type...

Geometry
1.2K views

ces F 0 7 Find the total area surface area of a regular hexahedron if...

Calculus
1.2K views

F x dx 3 and t If g x dx 3 what is the value...

Calculus
1.2K views

24 Megan started her own retail company and just released three new clothing items She...

Calculus
1.2K views

Use the Chain Rule to find aw dx Typo 11 dw dt 1 t where...

Accounting
1.2K views

QUESTION FOUR [25] The following information was extracted from the accounting records of Mode Ltd...

Accounting
1.2K views

Following is information on two alternative investments being considered by Tiger Co. The company requires...

Accounting
1.2K views

Problem IV Inventory methods. Flynt Company was formed on December 1,2016. The following information is...

Accounting
1.2K views

[The following information applies to the questions displayed below.] Chuck Wagon Grills, Incorporated, makes a...