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Question 77 - IIA-CIA-Part3 discussion

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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
Answers
A.
$9.50
B.
$10.50
Answers
B.
$10.50
C.
$11
Answers
C.
$11
D.
$13
Answers
D.
$13
Suggested answer: A
asked 18/09/2024
Ellee Chen
40 questions
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