The following unit cost information pertained to the trumpet division of WGN Music Co. and was based on monthly demand and sales of 100 units: Assume that the Trumpet Division was evaluating whether or not it would accept a special order for ten trumpets at $500 per unit.
Required:
1. Calculate total relevant cost per unit.
2. Should WGN accept the special order; why or why not?

Question

The following unit cost information pertained to the trumpet division of WGN Music Co. and was based on monthly demand and sales of 100 units:  Assume that the Trumpet Division was evaluating whether or not it would accept a special order for ten trumpets at $500 per unit.
Required:
1. Calculate total relevant cost per unit.
2. Should WGN accept the special order; why or why not?

Quizplus · Accepted Answer

The Answer of The following unit cost information pertained to the trumpet division of WGN Music Co. and was based on monthly demand and sales of 100 units:  Assume that the Trumpet Division was evaluating whether or not it would accept a special order for ten trumpets at $500 per unit.
Required:
1. Calculate total relevant cost per unit.
2. Should WGN accept the special order; why or why not?

The Following Unit Cost Information Pertained to the Trumpet Division