Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. masked productions was established two years ago t

Masked Productions was established two years ago to produce N95 facemasks. Production capacity is 55,000...

60.1K

Verified Solution

Question

Accounting

image

Masked Productions was established two years ago to produce N95 facemasks. Production capacity is 55,000 facemasks, although the company is still trying to build its client base and is currently operating at 60 per cent capacity. Fixed production costs are $295,000 and variable production costs are $9 per unit. Facemasks are generally sold through Pharmacy franchises at price of 25 each. Masked Productions has received an offer from ACT Health to purchase a one-off order of 25,000masks for $17 per unit. The ACT Health order will require additional delivery costs of $4 per mask. Required: (Round your answers to whole dollars). What is the current contribution margin for Masked Productions? $ 1. 2. What would be the contribution margin for the special order? 3. If Masked Productions wanted to maximise profits for the current year, how many facemasks will be sold to ACT Health? facemasks. How much profit would these sales contribute to the bottom line? $ profit. (Note if the special order should not proceed, enter o for both answers)

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. True or false? Briefly explain. a Suppose that you open The Wall Street Journal and...

Electrical Engineering
1.2K views

WHAT ARE THE KEY CONCEPTS YOU NEED TO KNOW ABOUT THE IT NETWORK ENGINEERING? PLEASE EXPLAIN THE...

Geometry
1.2K views

What is the name of the investment strategy in which a person invests equa mounts...

Basic Math
1.2K views

29 FIND THE TOTAL AREA UNDER THE CURVE FOR THE FOLLOWING a TO THE LEFT...

Basic Math
1.2K views

Identify the first 4 terms in the arithmetic sequence given by the explicit formula f(n)...

Statistics
1.2K views

SEP Explain Phenomena How are human activities related to the changes in ocean composition observed...

Statistics
1.2K views

Complete parts a and b below The number of dogs per household in a small...

Algebra
1.2K views

Express using rational exponents.? 9Provide your answer below:

Accounting
1.2K views

The following information is from the Income Statement...

Accounting
1.2K views

ABC Companys actual unit sales in the current year for January, February, and March was...

Accounting
1.2K views

Question three (Q3): Earth Star Diamonds Inc. began a potentially lucrative mining operation...

Accounting
1.2K views

Stock Investment Transactions On September 12, 2,500 shares of Aspen Company are acquired at a...