Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bc company has idle capacity. they have been offer

BC Company has idle capacity. They have been offered to roduce a special order for...

50.1K

Verified Solution

Question

Accounting

image

image

BC Company has idle capacity. They have been offered to roduce a special order for $300 that would normally sell for 450. The similar unit that sells for $450 has a variable cost o 225 and a fixed cost of $125 yielding a unit profit of $100. JOTE: they will have to rent a special machine in order to complete the order which will cost $90. There are no increases n fixed costs to take on this special project. Taking into consideration the cost of renting the machine, should they accept this special order? yes, take on the special order because profits increase $75 and there is idle capacity. no, don't take on the special order because it is $150 less than we would normally sell it for no, don't take on the special order because there is a $15 loss of profit. no, don't take on the special order because there is a $140 loss of profit. not enough information to make a decision

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

Q

24 The Haller family has four children Two of them DeeDee and Cassius have attached...

Biology
Q

A disc of mass 2 kg is rotating with angular velocity 30 rev 1 2...

Physics
Q

The expression simplifies to an u 1 cos u 1 cos u X sin u...

Geometry
Q

SOLVE, GRAPH AND WRITE IN INTERVAL NOTATION-3 ?2x+1?7-10<2(3x+5) <1613> 3x+4>-2-2<-x-5<1

Algebra
Q

67) A 10,000 sf warehouse was leased three years...

Accounting
Q

Update the balance sheet above to reflect the transactions below, which occur on January 6,2024...

Accounting
Q

EXERCISE 7-7 Computing ABC Product Costs [L03,L04] ucts follow: company makes two products, titanium Hubs...

Accounting
Q

Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone Manufacturing...

Accounting
Q

Cul de las siguientes afirmaciones es verdadera? Un nivel de significancia del 5% significa que...

Accounting
Q

For the EOQ and EPQ models, if the annual demand is the same, the annual...

Accounting
Q

Improving your communication skills will enhance your career because Select one: a. you'll need to...

Accounting
Q

Ross has received a special order for 12,000 units of its product at a special...

Accounting