Business, 06.10.2019 03:00 chuchi24

Augusta, inc., expects manufacturing and sales of 70,000 units of product maggie, its only product, to occur evenly over a 10-week period. augusta pays for materials in the week following use. the balance of accounts payable for materials at the beginning of the 10-week period is $40,000. there are no beginning inventories. the following information pertains to product maggie for the 10-week period:
sales price $11 per unit
materials $3 per unit
manufacturing conversion costs—fixed $210,000
variable $2 per unit
selling and administrative costs—fixed $45,000
variable $1 per unit
a special order for 4,000 units would cause a loss of 1,000 regular sales. all cost relationships are unchanged. if the special order is accepted, what minimum amount of revenue must be generated from the special order so that net income is not reduced?
a. $29,000b. $31,000c. $38,000d. $41,000

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Augusta, inc., expects manufacturing and sales of 70,000 units of product maggie, its only product,...

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