Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. waterways mass-produces a special connector unit t

Waterways mass-produces a special connector unit that it normally sells for $3.60. It sells approximately...

90.2K

Verified Solution

Question

Accounting

image
Waterways mass-produces a special connector unit that it normally sells for $3.60. It sells approximately 37,000 of these units each year, The unit varlable costs are $2.30. A company in Canada that has been unable to produce enough of a similar connector to meet customer demand would like to buy 14,300 of these units at $2,60 per unit. The production of these units is near full capacity at Waterways, so to accept the offer from the Canadian company would require temporarily adding another shift to its production line. To do this would increase unit variable manufacturing costs by $0.30. However, unit variable selling costs would be reduced by $0.20. An irrigation company has asked for a special order of 1.800 of the connectors. To meet this special order. Waterways would not need an additional shift and variable selling costs would not be reduced. The irrigation company is willing to pay $3,10 per unit. (a) What are the consequences of Waterway agreeing to provide the 14,300 units to the Canadian company? Would this be a wise "special order" to accept? Waterways accept the special order because net income by $

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

What is the NPV for the following project if its cost of capital is 15 percent...

Biology
1.2K views

How do bacteria become resistant to antibiotics A Bacteria can obtain DNA from antibiotics to...

Basic Math
1.2K views

What is the equal payment series for 12 years that is equivalent to a payment...

Calculus
1.2K views

K 1 x 49 16x O 07 u 00 OA OB O C D 4...

Algebra
1.2K views

points Prove that for any positive integer n there is an even positive teger k...

Accounting
1.2K views

anie: ID: B 46. Prepaid expenses are eventually expected...

Accounting
1.2K views

Using Percentage-of-Completion and Completed Contract Methods Halsey Building Company signed a contract to build an...

Accounting
1.2K views

Also, what are the key sources of information relative to ethical and professional responsibilities, that...

Accounting
1.2K views

Paul Inc. had average operating assets of $6,000,000 and sales of $3,000,000 in 2016. If...

Accounting
1.2K views

Q006: Which of the following accounts would be closed at the end of an accounting...

Finance
1.2K views

1) What is a stock's realized abnormal return if the stock had a 3% return...

Accounting
1.2K views

A shoe store developed the following estimated regression equation relating sales to inventory investment and...