Wagner Ltd can manufacture 490,000 tennis rackets a year at a variable cost of $15 per racket and fixed costs of $500,000. Wagner budgeted that it can sell 400,000 at $25 each. An additional order of 100,000 was received, but at a discount of 35% from the regular price. The relevant cost to Wagner of the special order is
A) $1,500,000
B) $1,450,000
C) $1,625,000
D) Some other amount
Correct Answer:
Verified
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Q46: Wagner Ltd can manufacture 490,000 tennis rackets
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Q48: In making a special order decision, which
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Q52: The general rule for special orders is
A)
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A) Sunk
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