Rosario Manufacturing Company Had the Following Unit Costs: Direct Materials

question 28

Multiple Choice

Rosario Manufacturing Company had the following unit costs: Direct materials $24
Direct labor 8
Variable factory overhead 10
Fixed factory overhead (allocated) 18
A one-time customer has offered to buy 2,750 units at a special price of $49 per unit. Assuming that sufficient unused production capacity exists to produce the order and no regular customers will be affected by the order, how much additional profit (loss) will be generated by accepting the special order?

• A) $134,750 profit
• B) $19,250 profit
• C) $84,000 loss.
• D) $16,500 loss

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Definitions:

Problem

A situation, question, or matter that needs to be solved or clarified.

Alternative Solutions

refers to different options or approaches available to solve a problem or address a situation, enabling decision-makers to evaluate the best course of action.

Fashion Business

The industry focused on the design, manufacturing, marketing, and sale of clothing, footwear, and accessories.

Crowdsourcing

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, especially from an online community, rather than from traditional employees or suppliers.