Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. husky industries has been approached by a new cust

Husky industries has been approached by a new customer who wants to place a special...

90.2K

Verified Solution

Question

Accounting

Husky industries has been approached by a new customer who wants to place a special order of 5,000 units of its product at a price of $52.00 a unit. The customer needs delivery within one month. This is an all or nothing order. Husky cannot provide only part of the order.

Husky can produce 35,000 units per month and has 1,000 finished goods in inventory. Sales to regular customers are expected to be 32,500 units for the upcoming month.

Huskys regular selling price is $70.00 per unit. Total manufacturing costs are $46.00 per unit which includes $11.00 per unit of fixed overhead. Regular Marketing costs include $12.00 per unit for variable costs and $4.00 per unit for fixed costs. Because of the nature of the special order, variable marketing costs would be $8.00 per unit.

Required:

A. How many units of sales to regular customers would Husky lose if it took on the special order?

B. What would be the impact on operating income if Husky accepted the special order?

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

Biology
1.2K views

You will need the information in this file to complete the two lab sequence This is the...

Biology
1.2K views

atoms it possesses Malate 5 x ketoglutarate 5 Acetyl CoA 2 Citrate 6 Question 4...

Physics
1.2K views

A 50 kg man stands on a 150 kg cart whic moves horizontally with speed...

Geometry
1.2K views

The front view of the top of a house is in the shape of a...

Basic Math
1.2K views

Find all zeros of f(x) = x - 9x + 22x - 10. Enter the...

Statistics
1.2K views

Espanol Here are the fuel efficiencies in mpg of 10 new cars 28 25 33...

Calculus
1.2K views

Consider the mathematical system defined in the table Assume that the associative property holds for...

Algebra
1.2K views

a e credit card statement to help fill in the table below Note that there...

Accounting
1.2K views

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation...

Accounting
1.2K views

Sorting, accumulating, packing, and loading are activities normally associated with: Receiving Put-away Storage...

Accounting
1.2K views

If the current ratio of a business is 3:1 and its current liabilities are $50,000,...

Accounting
1.2K views

Cardco Inc. has an annual accounting period that ends on December 31. During the current...