North Network Sdn. Bhd. (NNSB) is producing pen, named Nano-XFine. In producinga unit of Nano-XFine that normally sells for RM45 each, it costs RM30 per unit (RM20variable and RM10 fixed). Recently, a foreign wholesaler offers to buy 4,000 unitsNano-XFine at RM23 each. NNSB will incur special shipping costs of RM1 per unitNano-XFine. It is assumed that NNSB has excess operating capacity.А.REQUIRED:Analyze the offer made and suggest whether NNSB should accept it. Show all yourcalculations.Muhammad Teamwork Sdn. Bhd. (MTSB) makes unfinished bookcases that is sold forRM60 each. Production costs per unit are RM30 variable and RM10 fixed respectively.Due to the unused capacity, MTSB is considering of processing further the unfinishedbookcases which it can sell for RM70 each. Variable finishing costs are expected to beRM6 per unit with no increase in fixed costs.REQUIRED:(a)Prepare the incremental analysis on per unit basis showing whether MTSBshould sell unfinished bookcases or process it further.(b)Based on your analysis, what decision should the management make? Explain.B.

When management must decide whether to accept unusual customer requests, special-order decisions are…

North Network Sdn. Bhd. (NNSB) is producing pen, named Nano-XFine. In producing a unit of Nano-XFine that normally sells for RM45 each, it costs RM30 per unit (RM20 variable and RM10 fixed). Recently, a foreign wholesaler offers to buy 4,000 units Nano-XFine at RM23 each. NNSB will incur special shipping costs of RM1 per unit Nano-XFine. It is assumed that NNSB has excess operating capacity. A. REQUIRED: Analyze the offer made and suggest whether NNSB should accept it. Show all your calculations.

North Network Sdn. Bhd. (NNSB) is producing pen, named Nano-XFine. In producing a unit of Nano-XFine that normally sells for RM45 each, it costs RM30 per unit (RM20 variable and RM10 fixed). Recently, a foreign wholesaler offers to buy 4,000 units Nano-XFine at RM23 each. NNSB will incur special shipping costs of RM1 per unit Nano-XFine. It is assumed that NNSB has excess operating capacity. A. REQUIRED: Analyze the offer made and suggest whether NNSB should accept it. Show all your calculations.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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