1) Manufacturing company makes and sells 20,000 units of a single product. Total products costs are $14 per unit. If total sales were $560,000 what mark-up percentage is company using?
2) Paul's Pizza made and sold 2,000 pizzas last month and had fixed costs of $6,000. If production and sales are expected to raise by 10% next month, which of given statements is true?
a) Total fixed costs will decrease.
b) Fixed cost per unit will decrease.
c) Total fixed costs will increase.
3) Dye Company approaches Anderson with special order for 15,000 units at price of $7.50 per unit. Variable costs will be equivalent as present production and accepting special order will not have any impact on rest of company's orders. Though, Anderson is operating at capacity and will acquire extra $50,000 in fixed manufacturing overhead if order is accepted.
i) Determine incremental income (loss) associated with accepting special order?
ii) Compute the incremental revenue associated with accepting special order?