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Darya [45]
2 years ago
15

The following are hibiscus company cost of making and selling an item:

Business
1 answer:
Keith_Richards [23]2 years ago
3 0

Answer:

A. $3,600 advantage.

Explanation:

<u>Calculating the financial advantage of disadvantage of special order</u>

Increase in revenue (600*$26)                       $15,600    

Less: Increase in direct materials (600*$9)    $5,400    

Less: Increase in direct labor (600*$4)           $2,400    

Less: Increase in variable manufacturing       $1,200

overhead (600*$2)  

Less: Increase in variable selling and             $1,200

administrative (600*$2)  

Less: Increase in cost for specialized             <u>$1,800</u>

material (600*$3)  

Financial advantage from special order      <u>$3,600</u>

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