ignore the other person, the correct answer is A. code of Federal Regulations (CFR), parts
Answer:
The incremental cost is $198,000
Explanation:
Given;
Current cost per unit to manufacture = 66,000 units
Direct materials = $5.00
Direct labor= $9.00
Overhead = $10.00
Total cost per unit = $24.00
Incremental costs = $1,254,000 - $1,056,000 = $198,000
Debit Interest Expense [$480,000 x 8% x 360/360] = $38,400.00
<span>Credit Interest Payable = $38,400.00</span>
<span>Inez is still obligated to accept delivery of the boat because it is still the boat that she contracted out and built to the specifications that she requested. Just because it was contracted out to another company doesn't mean that she didn't get what she wanted for the price she wanted. If she didn't have a specific design then she might have an argument, however she did and it was built to that design specs.</span>
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