07 Flower Industries, a manufacturer of electronic parts, has recently received an invitation to bid on a special order for 24,000 units of one of its most popular products. Flower currently manufactures 48,000 units of this product in its Loveland, Ohio, plant. The plant is operating at 50% capacity. There will be no marketing costs on the special order. The sales manager wants to set the bid at $12 because she is sure that Flower will get the business at that price. Others on the executive committee of the firm object, saying that Flower would lose money on the special order at that price. Units Manufacturing costs: Direct materials Direct labor Factory overhead 48,000 72,000 $ 216,000 288,000 432,000 $ 144,000 192,000 336,000 Total manufacturing costs $ 672,000 $ 936,000 Unit cost $ 14 $ 13 Required: 2. What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short-term operating income if the order is accepted at the price recommended by the sales manager? 4. What would the total opportunity cost be if by accepting the special order the company lost sales of 6,600 units to its regular customers? Assume the preceding facts plus a normal selling price of $26 per unit. Complete this question by entering your answers in the tabs below. Required 2 Required 4 What would the total opportunity cost be if by accepting the special order the company lost sales of 6,600 units customers? Assume the preceding facts plus a normal selling price of $26 per unit. Total opportunity cost < Required 2 Required 4 Help Save & Exit Submit 5 01:22:53 Flower Industries, a manufacturer of electronic parts, has recently received an invitation to bid on a special order for 24,000 units of one of its most popular products. Flower currently manufactures 48,000 units of this product in its Loveland, Ohio, plant. The plant is operating at 50% capacity. There will be no marketing costs on the special order. The sales manager wants to set the bid at $12 because she is sure that Flower will get the business at that price. Others on the executive committee of the firm object, saying that Flower would lose money on the special order at that price. Units Manufacturing costs: Direct materials $144,000 48,000 72,000 Direct labor Factory overhead 192,000 336,000 $ 216,000 288,000 432,000 Total manufacturing costs $ 672,000 $ 936,000 Unit cost $14 $ 13 Required: 2. What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short-term operating income if the order is accepted at the price recommended by the sales manager? 4. What would the total opportunity cost be if by accepting the special order the company lost sales of 6,600 units to its regular customers? Assume the preceding facts plus a normal selling price of $26 per unit. Complete this question by entering your answers in the tabs below. Required 2 Required 4 What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? Wh the impact on short-term operating income if the order is accepted at the price recommended by the sales man Relevant cost per unit Bid price per unit should be any price above Change in short-term operating income Required 4 >