Question
1) Will there be more fixed costs if the firm takes on the extra order?( Remember the factory is operating at only about 70% of
1) Will there be more fixed costs if the firm takes on the extra order?( Remember the factory is operating at only about 70% of full capacity. The firm has to pay the same for the fixed costs connected to being able to make 65,000 units as they do for making only 45,000 units)
Yes or No _______
2) What is the contribution margin per unit on the proposal that has been made? ____
What is the lowest selling price that would still generate a positive contribution margin per unit and allow the firm to improve their financial position? ______
What is the variable product cost per unit of manufacturing one battery?
What contribution margin per unit would a bid quote of $10.50 per battery generate?__
What is lowest bid quote per battery that can be made that will still not make the firm worse off financially?____
How much positive contribution margin in total is the childrens shoe line providing that is helping the firm profit financially?___
How much the firms total net income drop if the childrens shoe line is dropped? __
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