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Virginia International University Operations And Supply Chain Management Assignment Help - Mackey Company

Question - 1. It costs Mackey Company $22 of variable and $15 of fixed costs to produce one Panini press
which normally sells for $57. A foreign wholesaler offers to purchase 1,000 Panini presses at $35
each. Mackey would incur special shipping costs of $5 per press if the order were accepted. Mackey
has sufficient unused capacity to produce the 1,000 Panini presses. If the special order is accepted,
what will be the effect on net income?
a. $8,000 increase
b. $8,000 decrease
c. $22,000 decrease
d. $7,000 increase
2. Keller Company manufactures a product with a unit variable cost of $150 and a unit sales price of
$264. Fixed manufacturing costs were $720,000 when 10,000 units were produced and sold. The
company has a one-time opportunity to ...Read More

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