Boone Products had the following unit costs: Direct materials £24; Direct labour £10; Variable factory overhead £8; Fixed factory overhead (allocated) £18. A one-time customer has offered to buy 2,000 units at a special price of £48 per unit. Because of capacity constraints, 1,500 units will need to be produced during overtime. Overtime premium is £7 per unit. The additional profit (loss) that will be generated by accepting the special order is
Select one:
a. cannot be determined.
b. £4,000 loss
c. £1,500 loss
d. £5,000 profit
e. £1,500 profit
If contribution per unit is £36 and total fixed costs is £9,000. In order to obtain a before-tax profit of £14,000 the company needs to sell-
Select one:
a. 456 units
b. 639 units
c. 333 units
d. 350 units
e. 875 units
Boone Products had the following unit costs: Direct materials £24; Direct labour £10; Variable factory overhead £8; Fixed factory overhead (allocated) £18. A one-time customer has offered to buy 2,000 units at a special price of £48 per unit. Because of capacity constraints, 1,500 units will need to be produced during overtime. Overtime premium is £7 per unit. The additional profit (loss) that will be generated by accepting the special order is
Select one:
a. cannot be determined.
b. £4,000 loss
c. £1,500 loss
d. £5,000 profit
e. £1,500 profit
If contribution per unit is £36 and total fixed costs is £9,000. In order to obtain a before-tax profit of £14,000 the company needs to sell-
Select one:
a. 456 units
b. 639 units
c. 333 units
d. 350 units
e. 875 units