Examlex
Weisbach Wallets (WW)produces nylon waterproof wallets. WW's plant capacity is 50,000 per month. Unit costs for the current production volume of 48,000 wallets are:
Direct materials $6.00
Direct labour 4.00
Variable overhead 1.50
Fixed overhead 3.00
Marketing - fixed 1.00
Marketing - variable 2.80
Current monthly sales are 48,000 wallets at $18 each. Suppose REI Quebec has contacted the manufacturing plant at WW about purchasing 2,000 units at $13 each. Current sales would not be affected by this order.
a)Should WW accept this special order? Provide computations to support your answer.
b)What is the minimum price that WW would generally accept for this order?
c)List two qualitative factors that should be considered for this decision.
Q3: Wagner Corporation can manufacture 490,000 tennis rackets
Q19: Information from job costing systems is subject
Q28: List two different types of nonroutine operating
Q59: Rayfield Company's management accountant collected the following
Q106: Jones Corporation prepared the following budgeted income
Q121: Sunk costs are:<br>A)The same as opportunity costs<br>B)Expenditures
Q126: Uncertainties affect:<br>A)Special order decisions and outsourcing decisions,
Q129: In a regression analysis for estimating a
Q147: Which of the following statements regarding overhead
Q161: After a company exceeds the breakeven point:<br>A)The