DPAD_conversion_costs - $20 per unit Each unit is sold for...

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Domestic production activities deduction Conversion costs & the substantial in nature test Swallow Corporation sells portable air filtration systems by means of the Internet and direct mail orders. Most of the components are purchased from foreign suppliers at a cost of $800. Swallow supplies the remaining components and assembles the final product at a cost of $210. Swallows marketing, packaging, and shipping expenses total
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Unformatted text preview: $20 per unit. Each unit is sold for $1,400. Required : 1. What is Swallow’s DPGR per unit? 2. What is Swallow’s QPAI per unit? Assume instead that Swallow incurred only $170 in production costs. Required : 3. What is Swallow’s DPGR per unit? Swallow’s QPAI per unit? 4. How could this have been avoided?...
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