(Solved):It costs Blakeley Company $22 of variable costs and $14 of allocated fixed costs to produce an…

 

Question

It costs Blakeley Company $22 of variable costs and $14 of allocated fixed costs to produce an industrial trash can that sells for $60.

A buyer offers to purchase 900 units at $24 each.

Blakeley has excess capacity and can handle the additional production.

What effect will acceptance of the offer have on net income (positive or negative) ?

 

EXPERT ANSWER

The calculated value of effect of the acceptance of the offer on the net

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