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    Dj Rasool
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    This document compares the revenues, costs, and operating income of a manufacturing company producing 7,500 units versus 10,000 units of a special order product. Producing 10,000 units would generate $262,500 more in revenues but also $202,500 more in total costs, leading to $47,500 more in operating income compared to the 7,500 unit scenario.

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    This document compares the revenues, costs, and operating income of a manufacturing company producing 7,500 units versus 10,000 units of a special order product. Producing 10,000 units would generate $262,500 more in revenues but also $202,500 more in total costs, leading to $47,500 more in operating income compared to the 7,500 unit scenario.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    10 views1 page

    Cost

    Uploaded by

    Dj Rasool
    This document compares the revenues, costs, and operating income of a manufacturing company producing 7,500 units versus 10,000 units of a special order product. Producing 10,000 units would generate $262,500 more in revenues but also $202,500 more in total costs, leading to $47,500 more in operating income compared to the 7,500 unit scenario.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Without OneWith OneTime Only

    Time Only
    Special Order Special Order
    7,500 Units
    10,000 Units
    Revenues
    Variable costs:
    Direct materials
    Direct manufacturing labor
    MOH cost
    Fixed costs:
    Fixed manufacturing costs
    Fixed marketing costs
    Total costs
    Operating income
    1
    262,500
    10,000
    7,500

    Difference
    2,500 Units

    1,125,000

    1,375,000

    262,500
    300,000
    45,000

    350,000
    2
    400,000
    3
    60,000

    87,500
    100,000
    15000

    275,000
    175,000
    1,057,500
    67500

    275,000
    175,000
    1260000
    115,000

    202500
    47500

    300,000
    10,000
    7,500

    250,000

    45000/ 7500 10,000

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