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1. Don Company currently manufactures and sells 2,000 units of a single product. The following data are per unit costs for 2,000 units: Direct materials Direct labour Factory overhead (30% variable) Selling expenses (50% variable) Administrative expenses (10% variable) Total per unit £2,400 960 1,800 900 840 £6,900 Recently, Jon Company approached Don Company about buying 200 units for £5,200 each. Currently, the model is sold to dealers for £7,800. Assume there is additional capacity for 100 more units and the company has to reduce regular customer sales by 100 units in order to contract the special order. There are selling expenses on only the sales to the regular customers. What is the net income if the special order of 200 units is accepted? a. b. £1,706,600 £1,800,000 C. £15,860,000 £1,460,,000 d. 2. Bobby Tote Bags Company manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z

1. Don Company currently manufactures and sells 2,000 units of a single product. The following data are per unit costs for 2,000 units: Direct materials Direct labour Factory overhead (30% variable) Selling expenses (50% variable) Administrative expenses (10% variable) Total per unit £2,400 960 1,800 900 840 £6,900 Recently, Jon Company approached Don Company about buying 200 units for £5,200 each. Currently, the model is sold to dealers for £7,800. Assume there is additional capacity for 100 more units and the company has to reduce regular customer sales by 100 units in order to contract the special order. There are selling expenses on only the sales to the regular customers. What is the net income if the special order of 200 units is accepted? a. b. £1,706,600 £1,800,000 C. £15,860,000 £1,460,,000 d. 2. Bobby Tote Bags Company manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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1. Don Company currently manufactures and sells 2,000 units of a single product. The following data are per unit costs for 2,000 units: Direct materials Direct labour Factory overhead (30% variable) Selling expenses (50% variable) Administrative expenses (10% variable) Total per unit £2,400 960 1,800 900 840 £6,900 Recently, Jon Company approached Don Company about buying 200 units for £5,200 each. Currently, the model is sold to dealers for £7,800. Assume there is additional capacity for 100 more units and the company has to reduce regular customer sales by 100 units in order to contract the special order. There are selling expenses on only the sales to the regular customers. What is the net income if the special order of 200 units is accepted? a. b. £1,706,600 £1,800,000 C. £15,860,000 £1,460,,000 d. 2. Bobby Tote Bags Company manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z
Transcribed Image Text:1. Don Company currently manufactures and sells 2,000 units of a single product. The following data are per unit costs for 2,000 units: Direct materials Direct labour Factory overhead (30% variable) Selling expenses (50% variable) Administrative expenses (10% variable) Total per unit £2,400 960 1,800 900 840 £6,900 Recently, Jon Company approached Don Company about buying 200 units for £5,200 each. Currently, the model is sold to dealers for £7,800. Assume there is additional capacity for 100 more units and the company has to reduce regular customer sales by 100 units in order to contract the special order. There are selling expenses on only the sales to the regular customers. What is the net income if the special order of 200 units is accepted? a. b. £1,706,600 £1,800,000 C. £15,860,000 £1,460,,000 d. 2. Bobby Tote Bags Company manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z
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