The pipes and plastic company manufactures wiring tools. The company is currently producing well below its full capacity. An Accra based company has approached pipes and plastics limited with an offer to buy 10,000 tools at ghc 1.75 each. Pipes and plastic limited sells its tools wholesale for ghc 1.85each; the average cost per unit is gh1.83 of which ghc 0.27 is fixed costs. If pipes and plastics were to accept the Accra based company's offer, what will be the increase in pipes and plastic operating profit?
The pipes and plastic company manufactures wiring tools. The company is currently producing well below its full capacity. An Accra based company has approached pipes and plastics limited with an offer to buy 10,000 tools at ghc 1.75 each. Pipes and plastic limited sells its tools wholesale for ghc 1.85each; the average cost per unit is gh1.83 of which ghc 0.27 is fixed costs. If pipes and plastics were to accept the Accra based company's offer, what will be the increase in pipes and plastic operating profit?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13P: Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income...
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The pipes and plastic company manufactures wiring tools. The company is currently producing well below its full capacity. An Accra based company has approached pipes and plastics limited with an offer to buy 10,000 tools at ghc 1.75 each. Pipes and plastic limited sells its tools wholesale for ghc 1.85each; the average cost per unit is gh1.83 of which ghc 0.27 is fixed costs. If pipes and plastics were to accept the Accra based company's offer, what will be the increase in pipes and plastic operating profit?
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