DPAD_conversion_costs - Swallows marketing, packaging, and...

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Topic: DPAD – 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.
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Unformatted text preview: Swallows marketing, packaging, and shipping expenses total $20 per unit. Each unit is sold for $1,400. Required : 1. What is Swallows DPGR per unit? 2. What is Swallows QPAI per unit? 3. Assume that Swallow incurred only $170 in production costs. What is Swallows DPGR per unit? What is Swallows QPAI per unit?...
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