Miller.MACC350T#5 - Total quantity Fixed overhead Total...

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Total quantity 55,000 Fixed overhead 0.3 Total fixed overhead= 16500 Total cost- Fixed cost= 0.53-0.25= $0.28 Total cost (excluding the fixed cost)= Total units *cost per unit $15,400.00 Sales amount @ $0.33 per pack= $18,150 The sales amount is greater than costs under differential analysis.The order should be accepted 2 Total pricing under differential analysis= $15,400.00 Add: price of hologram $5,000 $20,400.00 Sales amount= $18,150 As cost $20,400 is greater than sales ($18,150), so in this case the order should not be accepted The business is going to lose money if they stay with this situation.
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d by special sales. d.
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Differential analysis refers to the method pertaining to which two or more alternative of busin other in order to select the best alternative amongst the two. A business takes into considera relevant cost of the underlying alternatives and benefits of the same, however cost already in #2 Differential Analysis Particulars Amount Revenue (Expected decrease) $ (123,000.00) $90,000 Fixed Costs (Expected decrease) $45,000 Total Costs (Expected Decrease) $135,000 $ 12,000.00
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