lessard corporation special order 461191
Lessard Corporation manufactures a product with the following full unit costs at a avolume of 2,000 units:
Direct materials $ 400
Direct labor 160
Manufacturing Overhead (30% variable) 300
Selling Expenses (50% variable) 150
Administrative Expenses (10% variable) 140
Total Per Unit $ 1,150
A company recently approached Lessard’s management with an offer to purchase 200 units for $900 each. Lessard currently sells the product to dealers for $1,300 each. Lessard’s capacity is sufficient to produce the extra 200 units. No selling expenses would be incurred on the special order. If Lessard’s management accepts the offer, profits will:
A. Decrease by $50,000
B. Increase by $47,200
C. Increase by $127,000
D. Decrease by $80,000
We've got everything to become your favourite writing service
Money back guarantee
Your money is safe. Even if we fail to satisfy your expectations, you can always request a refund and get your money back.
Confidentiality
We don’t share your private information with anyone. What happens on our website stays on our website.
Our service is legit
We provide you with a sample paper on the topic you need, and this kind of academic assistance is perfectly legitimate.
Get a plagiarism-free paper
We check every paper with our plagiarism-detection software, so you get a unique paper written for your particular purposes.
We can help with urgent tasks
Need a paper tomorrow? We can write it even while you’re sleeping. Place an order now and get your paper in 8 hours.
Pay a fair price
Our prices depend on urgency. If you want a cheap essay, place your order in advance. Our prices start from $11 per page.