1) Emma Company received a special order for 1450 units at a discounted price of $51 each. The product normally sells at $70, has the following costs per unit: Direct Materials $5, Direct Labor $10, Variable Manufacturing Overhead $7, Fixed manufacturing overhead $6. Assume Emma is operating at full capacity. If Emma accepts the offer, what effect will the order have on the company's short term profit? Round your answer to the nearest dollar. If increase, just place the number, example $1,000 increase, answer 1,000. If decrease, place a negative sign before the number., example decrease of $1,000, answer -1,000.
2)
Evan Corp. is considering the possibility of outsourcing the production some upholstered chair pads that are included with some of its wooden chairs. The company has received a bid from a company in Mexico to produce 1300 units per year for $9 each. Evan has the following information about its own production of the chair pads:Direct materials $ 3
Direct labor 1
Variable manufacturing overhead 2
Fixed manufacturing overhead 4
Evan has determined that all variable costs could be eliminated by dropping production of the chair pads, and that 40 percent of the fixed manufacturing overhead is avoidable. At this time, Evan has no specific use in mind for the space currently dedicated to producing the chair pads. If Evan decides to outsource the production of the chair pads what is the incremental profit (loss) from outsourcing? If you calculate a loss enter as -, Example a loss of $1,000 would be entered -1,000.
Emma Company recelved a spedal oeder for 1450 units at a discounted price of 551 each. The product normally sels at 570 , has the following costs per unit Direct Materials $5. Direct Labor $10, Variable Manutacturing Overhead \$7. Fixed manufacturing ovethead $6 Assume Emma is operating at fut capacity. If Emma accepts the ofler, what ellect wilt the order have on the compary's short lerm proce? Round your answer to the nearest doliat. If increase, just place the mumber, example $1,000 increase, answer 1,000 if decrease, place a negative sign before the number, example decrease of $1,000, answer 1,000. selectedAnswer:CorrectAnwwer42,05027,550+1 Evan Corp, is consisering the posstality of outsourcing the production some uphoitered char pads that are included with some of its wooden chairs. The coripany has received a bid ferm a conpany in Mesico to produce 1300 units per year for 59 each. Evas has the following information about is own production of the chair pads: Dened matents 33 Dred labor veriatie munutacting owentest 2 Fiens mandadurng eveheat 4 Evan tias delerrined that at vaniable costs could be eliminaled by dropping production of the chair pads, and that 40 percent of the fred manulacturing overhead is avoidable. A this time, Evar has no specke use in mind for the space currenty descated to producing the chair pads. If Evan decides to outsource the production of the chair pads what is the incremental proft (foss) from outsourciry? If you caculate a loas enter as - Esample a boss of $1,000 would be entered 1,600. Leave no spaces. Selected Answer: 1,900 Cocrectanswer 1,820+1
