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Ratzlaff Company has a current production level of 20,000 un…
Ratzlaff Company has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Marketing – fixed 0.20 Marketing/distribution – variable 0.40 Current monthly production and sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. In addition, the total fixed overhead and the total fixed marketing costs would remain the same. What is Ratzlaff Company’s change in operating profits if the special order is accepted?
Ratzlaff Company has a current production level of 20,000 un…
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Rаtzlаff Cоmpаny has a current prоductiоn level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Marketing - fixed 0.20 Marketing/distribution - variable 0.40 Current monthly production and sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. In addition, the total fixed overhead and the total fixed marketing costs would remain the same. What is Ratzlaff Company's change in operating profits if the special order is accepted?
Rаtzlаff Cоmpаny has a current prоductiоn level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Marketing - fixed 0.20 Marketing/distribution - variable 0.40 Current monthly production and sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. In addition, the total fixed overhead and the total fixed marketing costs would remain the same. What is Ratzlaff Company's change in operating profits if the special order is accepted?
Rаtzlаff Cоmpаny has a current prоductiоn level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Marketing - fixed 0.20 Marketing/distribution - variable 0.40 Current monthly production and sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. In addition, the total fixed overhead and the total fixed marketing costs would remain the same. What is Ratzlaff Company's change in operating profits if the special order is accepted?
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