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1. 2. Jumonville Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity

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Jumonville Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: Direct materials ........................... Direct labor... Variable manufacturing overhead. Fixed manufacturing overhead. ................. Variable selling & administrative expense...... Fixed selling & administrative expense ............. $26.60 $4.30 $1.90 $11.10 $1.50 $9.10 The normal selling price of the product is $56.70 per unit. An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.70 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Required: Compute the minimum acceptable price for this special order. Show your work. Block Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: Selling price per unit. Variable cost per unit ............... Time on the constraint (minutes)....... FX $325.89 $251.94 5.10 JR $543.15 $420.75 8.50 ZZ $508.00 $397.60 8.00 Required: Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work

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