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2 years ago

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:

Calculating the financial advantage of disadvantage of special order

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 $1,800

material (600*$3)

Financial advantage from special order $3,600

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