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Unformatted text preview: Chapter 6 Take home Quiz ACCT 2101 PLEASE PLACE ALL ANSWERS IN THE ANSWER BOXES PROVIDED!! 1. One-Time Special Order: Schaeffer Company is currently producing 18,000 units per month, which is 75% of its production capacity. Variable manufacturing costs are currently $12.10 per unit and fixed manufacturing costs are $30,000 per month. Schaeffer pays a 9% sales commission to its sales people, and is averaging $396,000 in sales per month. A special order received from a foreign company would enable Schaeffer Company to operate at 100% capacity. The foreign company offered to pay 75% of Schaeffer’s current selling price per unit. If the order is accepted, Schaeffer will have to spend an extra $2.00 per unit to package the product for overseas shipping. Also, Schaeffer Company would need to lease a new stamping machine to imprint the foreign company’s logo on the product, at a monthly cost of...
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This note was uploaded on 02/25/2011 for the course ACCT 2101 taught by Professor Brooks during the Spring '08 term at LSU.
- Spring '08