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2.2 Blossominc manufactures two electronic products, widgets and gadgets and has a capacity of 2.700 machine hours. Prices and coets for each product are as
2.2
Blossominc manufactures two electronic products, widgets and gadgets and has a capacity of 2.700 machine hours. Prices and coets for each product are as follows: Widget Gadget $347 $267 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 34 52 14 29 47 63 *Variable manufacturing overhead costs are applied at a rate of $57 per machine hour, Steering Industries, a potential client has offered $268 per unit to Blossom foc 266 special units. These 266 units would be the following production costs and time Direct materials 510.234 Other direct costs $4.700 Machine hours 242 Assume that Blossom is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour (Round machine hours to 2 decimal places, es. 12.25 and final answers to decimal places, es 125) Widget Gadget New Order CM per unit $ CM per machine hour $ Determine whether Blossom should produce the units for the special order instead of widget or gadget units Blossom produce the units for the special order instead of widget ar gadget units Step by Step Solution
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