Flip Flop Inc. (FFI) has a capacity to manufacture up to 100,000
flip flops annually in Canada. For next year, expected production
and sales are 80,000 units with sale price of $10 per unit. The
following costs are expected:
Production and sales
80,000 units
Direct materials used
120,000 $
Direct
labour
80,000
MOH variable
120,000
MOH fixed
280,000
Selling expenses variable
64,000
Selling expenses fixed
56,000
FFI received the following offers:
1. Africa
Imports (AI) would like to purchase 10,000 units...