Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 17 Aug 2017 My Price 11.00

harming normal production

Capitol has received a special order for 2,160 units of its product at a special price of $155. The product normally sells for $216 and has the following manufacturing costs:

   

  Per unit
  Direct materials $ 55  
  Direct labor   35  
  Variable manufacturing overhead   25  
  Fixed manufacturing overhead   45  
       
      Unit cost   160  
       
 

   

Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable.

a.If Capital accepts the order, what effect will the order have on the companyAc€?cs short-term profit?

b.

What minimum price should Capital charge to achieve a $45,000 incremental profit? (Round your answer to 2 decimal places.)

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 06:08 PM My Price 11.00

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