Below are the sales price per unit and the unit cost for each item sold by business segment. The facility level cost is allocated equally across each business segment.
ABC Company A B C Total
Revenue $100 $700 $500 $1,300
Unit level cost (10) (100) (75) (185)
Batch level cost (2) (5) (20) (27)
Product level cost (5) 0 (25) (30)
Facility level cost (90) (90) (90) (270)
Net income ($7) $505 $290 $788
XYZ Company has requested a special order from ABC. It would like to purchase 100 units of Product A for $50 per unit. Should ABC take the special order?
A. Yes
B. No
Answers: 3
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Below are the sales price per unit and the unit cost for each item sold by business segment. The fac...
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