Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 16 Aug 2017 My Price 5.00

HighValu Inc

1.  Special Order Pricing

HighValu Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells  for

$225. It currently manufactures and sells 6,000 sets per year. The manufacturing costs include $85 for materi- als and $45 for labor per set. The overhead charge per set is $35, which consists entirely of fixed costs.

HighValu is considering a special purchase offer from a large retail firm, which has offered to buy 600 sets per year for three years at a price of $150 per set. HighValu has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity.

Required    Should HighValu accept the offer?

Answers

Maurice Tutor
(5)
Status NEW Posted 16 Aug 2017 09:08 PM My Price 5.00

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