(Solved):X Company currently manufactures and sells 10,000 fishing boats each year at a selling price of…

 

Question

X Company currently manufactures and sells 10,000 fishing boats each year at a selling price of $1,000 per boat. It has the following cost data. T

Variable manufacturing cost $400 per boat
Variable selling cost $20 per boat
Fixed manufacturing cost $4,000,000per year
Fixed selling & administrative cost $1,000,000 per year

The manager has the opportunity for a special one-time sale of 500 boats at a selling price of $750 per boat. If the order

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