Scott Company has an annual capacity of 18,000 units.Budgeted operating results for 2006 are as follows:
A foreign wholesaler wants to buy 1,000 units at a price of $40 per unit.All fixed costs would remain within the relevant range.Variable selling costs on the special order would be the same as variable selling costs for regular orders.
Required:

Question

Scott Company has an annual capacity of 18,000 units.Budgeted operating results for 2006 are as follows:
  A foreign wholesaler wants to buy 1,000 units at a price of $40 per unit.All fixed costs would remain within the relevant range.Variable selling costs on the special order would be the same as variable selling costs for regular orders.
Required:

Quizplus · Accepted Answer

The Answer of Scott Company has an annual capacity of 18,000 units.Budgeted operating results for 2006 are as follows:
  A foreign wholesaler wants to buy 1,000 units at a price of $40 per unit.All fixed costs would remain within the relevant range.Variable selling costs on the special order would be the same as variable selling costs for regular orders.
Required:

Scott Company Has an Annual Capacity of 18,000 Units