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elena-14-01-66 [18.8K]
3 years ago
14

Jacoby Company received an offer from an exporter for 25,400 units of product at $18 per unit. The acceptance of the offer will

not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 13 Fixed 5 The differential revenue from the acceptance of the offer is
Business
1 answer:
OlgaM077 [116]3 years ago
6 0

Answer:

Differential income from the special order= $127,000

Explanation:

A company should accept a special order where the order generates additional contribution. i.e where the special order sales exceeds all relevant cost.

The relevant cost for decision to accept the special order are  

I Incremental Revenue from the special order  

2. incremental variable cost

Contribution per unit = 18-13=5

Total contribution from special order = contribution per unit × units

                                                      = 5× 25,400=$127,000

Differential income from the special order= $127,000

Note that whether or not the special order is accepted the fixed manufacturing and fixed operating expenses of would be incurred either way. Therefore , they are not relevant for the decision

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Answer:

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<em>The future value is the expected total sum that an investment is suppose to accumulate together with interest over a period of time at a particular interest rate.</em>

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FV - ?  

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pshichka [43]

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A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis
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