aAnown as Ponts One of its products, which is used in the con this product are g

Question

aAnown as Ponts One of its products, which is used in the con this product are given below: 38 Younes Inec. manufactures industrial components. One of its products, of industrial air conditioners, is known as PO6, Data concerning Per Unit S 220 $ 38 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling and administrative expense s 16 s 16 The above per unit data are based on annual production of 4,000 units of the component There would The company has received a special, one-time-only order for 400 units of component PO be no variable selling expense the company. What is the minimum price per unit belo special order? A) $47 per unit B) $83 per unit C) S63 per unit D) $220 per unit on this special order and the order would be within the relevant range for w which the company should not accept the 39. Refer back to the previous question's costing information. Assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale o costs is relevant in this decision? A) S47 variable product cost B) 563 unit product cost C) S4 variable selling cost D) $83 full cost f these defective units will have no effect on the company's other sales. Which of the following 40. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the product line appear less profitable than it really is. A) True B) False

Explanation / Answer

38..

direct materials 38 + direct labor 1 + variable manufacturing overhead 8 = 47

so answer is A.$47 per unit

39..

answer is C. $4 variable selling cost

40.. true

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