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stich3 [128]
3 years ago
13

Boone Products had the following unit costs:Direct materials $24Direct labor 10Variable overhead 8Fixed factory (allocated) 18A

one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit or loss will be generated by accepting the special order?a. $30,000 lossb. $4,000 profitc. $24,000 lossd. $4,000 loss
Business
1 answer:
Maslowich3 years ago
4 0

Answer: Option (b) is correct.

Explanation:

Given that,

Direct materials = $24

Direct labor = $10

Variable overhead = $8

Fixed factory (allocated) = $18

Overtime premium = $8 per unit

Purchased = 2,000 units at a special price of $48 per unit

Contribution Margin (2000 - 1000 units) = special price per unit - Direct materials - Direct labor - Variable overhead

= 48 - 24 - 10 - 8

= $6 per unit

Contribution margin for units produced during overtime = special price per unit - Direct materials - Direct labor - Variable overhead - Overtime premium

= 48 - 24 - 10 - 8 - 7

= $(-1) per unit

Total contribution = 1000 × 6 + 1000 × -1

= $6000 - $1000

= $4000 Profit

Therefore, additional profit will be generated by accepting the special order is $4000.

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Answer:

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Explanation:

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Since, as Systech corp, team is composed of people with different nationality and diverse skill,  it can be rightly said that such team is example of team diversity based on above mentioned definition of team diversity.

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Answer:

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Explanation:

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Read 2 more answers
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