The following information relates to a.The following per-unit cost information relates to Product K of Magna Company, based on the maximum capacity of 40,000 units.Variable Manufacturing$ 30Variable Selling4Fixed Manufacturing12Fixed Selling7Unit cost$ 53Magna is expected to sell all of 40,000 units produced to its regular customers for a price of $80 per unit. Sonya has approached Magma to buy 10,000units of Product K. If Magna sells to Sonya, variable selling costs will not be incurred. To Sonya, Magna has to charge at leastper unit?Multiple Choice$80$76$26$53$30

Solution given Maximum capacity 40000 units Variable manufacturing $30 Variable…

Unit cost $ 53 agna is expected to sell all of 40,000 units produced to its regular customers for a price of $80 per unit. Sonya has approached Magma to buy 1 hits of Product K. If Magna sells to Sonya, variable selling costs will not be incurred. To Sonya, Magna has to charge at least, ultiple Choice 30 76 per unit?

Unit cost $ 53 agna is expected to sell all of 40,000 units produced to its regular customers for a price of $80 per unit. Sonya has approached Magma to buy 1 hits of Product K. If Magna sells to Sonya, variable selling costs will not be incurred. To Sonya, Magna has to charge at least, ultiple Choice 30 76 per unit?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4CMA: Bethany Company has just completed the first month of producing a new product but has not yet...

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