IIA
IIA-CIA-PART3 · Question #77
IIA-CIA-PART3 Question #77: Real Exam Question with Answer & Explanation
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Question
A company produces water buckets with the following costs per bucket: Direct labor = 82 Direct material = $5 Fixed manufacturing = 83.50 Variable manufacturing = 82.50 The water buckets are usually sold for $15. However, the company received a special order for 50.000 water buckets at 311 each. Assuming there is adequate manufacturing capacity and ail other variables are constant , what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?
Options
- A$9.50
- B$10.50
- C$11
- D$13
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