The Following Are Silver Corporation's Unit Costs of Making and Selling

question 18

Multiple Choice

The following are Silver Corporation's unit costs of making and selling an item at a volume of 8,000 units per month (which represents the company's capacity) : Present sales amount to 7,000 units per month. An order has been received from a customer in a foreign market for 1,000 units. The order would not affect regular sales. Total fixed costs, both manufacturing and selling and administrative, would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume that direct labor is a variable cost.
What is the financial advantage (disadvantage) for the company from this special order if it prices the 1,000 units at $20 per unit?

• A) $1,000
• B) $9,000
• C) ($6,000)
• D) $8,000

Identify the sequential order of business activities and how they are recorded in QuickBooks.

Recognize the correct process for recording customer payments and sales in QuickBooks.

Identify reports that track accounts receivable and understand their purpose.

Understand how different types of sales are recorded in QuickBooks.

---

Definitions:

Abrasion

The process of wearing down or rubbing away materials through mechanical action, often seen in geological contexts.

Scraping

the process of removing material from a surface using a hard edge or object.

Gouging

The process of making grooves or marks in a surface, often related to glacial activity in geological contexts.

Cirque

An open-sided, bowl-shaped depression formed in a mountain, commonly at the head of a glacial valley; produced by erosion of a glacier.