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make 13,400 of the assembly part at $6 per unit. If the offer is accepted,
Manson will save all variable costs but no fixed costs. Prepare an
analysis showing the total cost saving, if any, Manson will realize by
buying the part
Brief Exercise 20-8
Lisah, Inc., manufactures golf clubs in three models. For the year, the
Big Bart line has a net loss of $5,500 from sales $200,000, variable costs
$176,000, and fixed costs $29,500. If the Big Bart line is eliminated,
$20,100 of fixed costs will remain. Prepare an analysis showing whether
the Big Bart line should be eliminated
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ACC 561 Week 6 Wileyplus Practice Quiz
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1. A major accounting contribution to the managerial decision-making
process in evaluating possible courses of action is to
2. In incremental analysis,
3. Incremental analysis is most useful
4. It costs Ross Co. $24 of variable and $10 of fixed costs to produce
one bathroom scale which normally sells for $70. A foreign wholesaler
offers to purchase 2,000 scales at $30 each. Ross would incur special
shipping costs of $2 per scale if the order were accepted. Ross has
sufficient unused capacity to produce the 2,000 scales. If the special
order is accepted, what will be the effect on net income?
5. Carter, Inc. can make 100 units of a necessary component part with
the following costs:
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000