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Question 77 - IIA-CIA-Part3 discussion
A company produces water buckets with the following costs per bucket:
Direct labor = 82
Direct material = $5
Fixed manufacturing = 83.50
Variable manufacturing = 82.50
The water buckets are usually sold for $15. However, the company received a special order for 50.000 water buckets at 311 each.
Assuming there is adequate manufacturing capacity and ail other variables are constant , what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?
A.
$9.50
B.
$10.50
C.
$11
D.
$13
Your answer:
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