Chapman Company sells its product for R42 per unit. The company's unit product cost based on the full capacity of 400,000 units is as follows: Direct materials 8 Direct labor 10 Manufacturing overhead 12 Unit product cost R30A special order offering to buy 40,000 units has been received from a foreign distributor. The only selling costs that would be incurred on this order would be R6 per unit for shipping. The company has sufficient idle capacity to manufacture the additional units. Two-thirds of the manufacturing overhead is fixed and would not be affected by this order. Assume that direct labor is an avoidable cost in this decision. In negotiating a price for the special order, the minimum acceptable selling price per unit should be: Selected IncorrectA. R36 Answers: A. R36 CorrectB. R28 C. R30 D. R32

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer