211k views
1 vote
C. assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $84 per unit. which income statement presents the most relevant data? answer variable costing determine the apparent profit or loss on the special order based solely on these data. use a negative sign with your answer if the special order creates an apparent loss. round answer to the nearest whole number. $answer 84000 d. if the ending inventory is destroyed by fire, which costing approach would you use as a basis for filing an insurance claim for the fire loss? why? select the most appropriate statement. absorption costing approach because the cost should include a reasonable portion of fixed manufacturing costs. variable costing approach because the cost should include a reasonable portion of fixed manufacturing costs.

User Ssobczak
by
8.9k points

1 Answer

2 votes

Final answer:

At a quantity of 5 units and a selling price of $25 each, the company will experience a loss of $5. By comparing average cost and selling price, it is evident that the company is making losses. The marginal unit produced is also contributing to the overall losses.

Step-by-step explanation:

a. At a quantity of 5 units and a selling price of $25 each, the company's total revenue will be $125. However, the total cost of producing 5 units is $130, resulting in a loss of $5.

b. By comparing the average cost per unit and the selling price, you can determine whether the company is making or losing money. In this case, the average cost per unit is $26, which is greater than the selling price of $25, indicating that the company is making losses.

c. Since the marginal cost of producing the fifth unit is $30 and the selling price is $25, the marginal unit is adding to the company's losses. Therefore, the company should consider reducing its quantity produced to increase profits.

User Madzohan
by
8.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories