Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. li company produces a product that sells for $86 p

Li Company produces a product that sells for $86 per unit....

80.2K

Verified Solution

Question

Accounting

image
Li Company produces a product that sells for $86 per unit. The product cost per unit using absorption costing is $70. A customer contacts L and offers to purchase 2,200 units of this product for $70 per unit. Variable costs of goods sold with this order would be $31 per unit, and variable selling and administrative costs would be $19 per unit. This special order would not require any additional fixed costs, and Li has sufficient capacity to produce this special order without affecting regular sales. (a) Compute contribution margin for this special order. (b) Should Li accept this special order? Complete this question by entering your answers in the tabs below. Compute contribution margin for this 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

Q

it sells 125 boxes per day The company is considering two new designs for the...

Geometry
Q

For Problems 7 11 determine a the cost of the bond b the annual interest...

Basic Math
Q

what factors would you consider when developing a swap strategy to manage interest rate risk

Finance
Q

1) Find the critical numbers of the function.  f(θ) = 16 cos θ + 8 sin^2...

Basic Math
Q

Let x represent the average annual salary of college and university professors (in thousands of dollars)...

Statistics
Q

Demonstrate why is not enough to use an asymmetric crypting scheme such as RSA to allow...

Programming
Q

Describe Trader Joe's key business functions (excluding "logistics") and the functional strategies as they relate to...

General Management
Q

ar WP P 4 Based on your understanding of interference and diffraction explain why you...

Physics
Q

The physician ordered Platinol (cisplatin) 100 mg/m IV to infuse over6 hours once every 4...

Basic Math
Q

Which inequality is true when the value of a is-18?

Basic Math
Q

8 So 1 point Suppose g x 8 t dt Calculate g x in two...

Calculus
Q

Reset the Data Section of the CAPBUD2 worksheet to the original values. In requirement 4,...

Accounting