Black Horse Corporation manufactures a product with the following full unit costs at a volume of 2000 units:
Direct Materials $100
Direct Labor $40
Manufacturing Overhead (30% variable) $75
Selling expenses (50% variable) $25
Administrative expenses (10% variable) $40
Total Per unit $280
A company recently approached Black Horse's management with an offer to purchase 225 units for $275 each. Black horse currently sells the product to dealers for $400 each. Black horse's capacity is sufficient to produce the extra 225 units. No selling expenses would be incurred on the special order.
If Black Horse's management accepts the offer, profits will: Select one:
A. Increase by $33,40.
B. Decrease by $24,412.50
C. Decrease by $60,000
D. Increase by $24,412.50 Check
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Black Horse Corporation manufactures a product with the following full unit costs at a volume of 2000 units: Direct Materials $100 Direct ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
EB3. LO 2.1Flip or Flop is a retail shop selling a wide variety of sandals and beach footwear. In 2019, they had gross revenue from sales totaling $93,200. Their operating expenses for this same period were $34,000.
Answers (1)
Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January 41,000 February 38,000 March 50,000 The average price for a drum is $35.
Answers (1)
The financial statements of gervais manufacturing company report net sales of $500,000 and accounts receivable of $80,000 and $40,000 at the beginning and end of the year, respectively. what is the accounts receivable turnover for gervais?
Answers (1)
Going to college is an expensive proposition. Determine whether the following costs of attending college are implicit or explicit. Time spent away from family: 1. Transportation: 2. Forfeited working experience: 3. Books and materials: 4.
Answers (1)
On what criteria were benefits provided through social security?
Answers (1)
New Questions in Business
Examples of transaction costs include (check all that apply) : A. the cost of the externality. B. the cost of monitoring an agreement. C. the cost of drafting a contract or agreement. D.
Answers (1)
Josh, Inc. is faced with the choice of either producing a newly designed product, XX-30, to stock in anticipation of demand or to customer order. The demand for the product is expected to be 5,000 units per week.
Answers (1)
Gwen is a psychologist who maintains an office in a professional suite. She often spends time doing paperwork and scheduling in her home officeWhich of the following is true?
Answers (1)
A certificate of deposit will often result in a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the amount for early withdrawal on a $20,000, 4 percent CD?
Answers (1)
Androscoggin Copper can grow at 5% per year for the indefinite future. It's selling at $100, and next year's dividend is $5.
Answers (1)