ACC240,Chapter 22, Answer Key,2010

ACC240,Chapter 22, Answer Key,2010 - Chapter 22 Answer Key...

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Chapter 22 Answer Key. PRACTICE EXERCISES PE 22–1 (LO1) Differential Costs, Sunk Costs, and Opportunity Costs The correct answer is D. A sunk cost is one that cannot be avoided. PE 22–2 (LO1 ) Sunk Costs The correct answer is C. E 22–16 (LO2) Special Order Pricing 1 . The minimum selling price would be one that covers at least the variable costs of the product. Any price greater than $81 would provide a contribution margin per unit to cover fixed costs. Variable costs: Direct materials . ................................................................ $38 Direct labor . ....................................................................... 24 Variable manufacturing overhead . ................................. 14 Variable selling and administrative expenses . .............. …. 5 Total variable costs . .................................................... $81 2. Increase in profit Selling price . ....................................................................... $ 89 Variable costs . .................................................................... (81)
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This note was uploaded on 10/16/2011 for the course ACC 240 taught by Professor Sidneyford during the Fall '10 term at Chandler-Gilbert Community College.

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ACC240,Chapter 22, Answer Key,2010 - Chapter 22 Answer Key...

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