2.

The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: Selling price per unit Variable cost per unit Minutes on the constraint WX KDFS $335.09 $228.37 $199.12 $259.44 $173.26 $159.79 6.60 3.40 4.60 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.) Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $33. The following cost data per fan is based on a full capacity of 162,000 fans produced each period. $10 $ 7 Direct materials Direct labor Manufacturing overhead (50% variable and 50% unavoidable fixed) $ 6 A special order has been received by Landor for a sale of 30,000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. Landor is now selling 132,000 fans through regular channels each period. Assume that direct labor is an avoidable cost in this decision. What should Landor use as a minimum selling price per fan in negotiating a price for this special order? Gallerani Corporation has received a request for a special order of 5,000 units of product A90 for $28.00 each. Product A90's unit product cost is $27.55, determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 3.10 8.40 7.50 8.55 $27.55 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.30 per unit and that would require an investment of $14,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be