Iqbal Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department for
1 answer:
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Answer:
C. yes, she still makes a profit by selling the 3-color application.
Explanation:
As for the information provided,
Cost for 1 color pin striping job = $35
Cost for three color pin striping job accordingly = $35 3 = $105
Price charged for pin striping is as follows:
For 1 color = $95
For 3 colors = $175
Even on 3 color striping there is a profit of $70, thus, it should be sold.
As there is no loss, although the profit margin is decreased as a percentage of cost when compare to margin on 1 color pin striping.
Thus, correct option is Statement C.