Business, 11.02.2020 22:55 jdkrisdaimcc11

Alpine Luggage has a capacity to produce 200,000 suitcases per year. The company is currently producing and selling 80,000 units per year at a selling price of $160 per case. The cost of producingand selling one case follows:Variable manufacturing costs $64 Fixed manufacturing costs 16 Variable selling and administrative costs 32 Fixed selling and administrative costs 8 Total costs $120 The company has received a special order for 5,000 suitcases at a price of $100 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $20 per suitcase. The special order would have no effect on total fixed costs.

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Alpine Luggage has a capacity to produce 200,000 suitcases per year. The company is currently produc...

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