(TCO 5) The MNK Company has gathered the following information for a unit of its most popular

(TCO 3) The Wiscow Manufacturing Company recorded overhead costs of $21,500 at an activity level of 5,000 machine
February 11, 2020
Cameron Carts produces three models of push carts, the Economy, the Standard, and the Deluxe
February 11, 2020

(TCO 5) The MNK Company has gathered the following information for a unit of its most popular

product: 

Direct materials

$6

Direct labor

$3

Overhead (40% variable)

$5

  Cost to manufacture

$14

Desired markup (50%)

$7

  Target selling price

$21

The above cost information is based on 4,000 units. A foreign distributor has offered to buy 1,000 units at a price of $16 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, MNK’s operating profits will increase by:

A. $1,000.

B. $2,000.

C. $4,000.

D. $5,000.

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp
%d bloggers like this: