Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: Sales price per unit Variable costs per unit: Manufacturing Marketing and administrative $43 O A. Decrease by $69,600 B. Increase by $29,000 C. Increase by $226,200 O D. Increase by $69,600 $27 $7 Total fixed costs: Manufacturing $76,000 $24,000 Marketing and administrative If a special sales order is accepted for 5,800 umbrellas at a price of $39 per unit, fixed costs remain unchanged, and no
Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: Sales price per unit Variable costs per unit: Manufacturing Marketing and administrative $43 O A. Decrease by $69,600 B. Increase by $29,000 C. Increase by $226,200 O D. Increase by $69,600 $27 $7 Total fixed costs: Manufacturing $76,000 $24,000 Marketing and administrative If a special sales order is accepted for 5,800 umbrellas at a price of $39 per unit, fixed costs remain unchanged, and no
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...
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