Jaxson Corporation manufactures portable window air conditioners. Jaxson has the capacity to manufacture and sell...
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Jaxson Corporation manufactures portable window air conditioners. Jaxson has the capacity to manufacture and sell 80,000 air conditioners each year but is currently only manufacturing and selling 60,000. The following per unit numbers relate to annual operations at 60,000 units: Selling price $125 Manufacturing costs: Variable \$ 25 Fixed $40 Selling and administrative The Ciy of Macy would like to purchase 3,000 air conditioners from Jaxson only if they can get hem for \$75 each. Variable selling and administrative costs on this special order will drop down to $2 per unit This special order will not affect the 60,000 regular sales and it will not affect the total fixed costs. The annual financial advantage (disadvantage) for the company as a result of acoepting this special order from the City of Macy should be: 2. ($129,000) b. $144,000 a. ($129,000) b. $144,000 c. ($21,000) d. $24,000
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