Asked by Keandra Moffitt on May 20, 2024
Verified
Variations Company had the following results of operations for the past year:
A foreign company offers to buy 700 units at $4 per unit.In addition to variable manufacturing costs,there would be an export cost of $0.30 per unit.Prepare an analysis of this additional business to show whether Variations should take this order.
Export Cost
Expenses associated with sending goods or services to another country for sale or trade.
Variable Manufacturing Costs
Costs that vary directly with the level of production output, including expenses like raw materials and hourly labor costs.
- Analyze the effect of unique order decisions on both financial outcomes and regular business processes.
Verified Answer
DC
derrius carterMay 22, 2024
Final Answer : 
Thus,since operating income would decrease by $35,Variations should not take the order.
Thus,since operating income would decrease by $35,Variations should not take the order.
Learning Objectives
- Analyze the effect of unique order decisions on both financial outcomes and regular business processes.
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