Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3026 ncaa manufacturing company hes rec special order for 1000 units of its product TK 5 The Dect materi $8.00 12.00 Manufacturing o $1000 Unt
3026 ncaa manufacturing company hes rec special order for 1000 units of its product TK 5 The Dect materi $8.00 12.00 Manufacturing o $1000 Unt product cost The company's macturing head cost is my ft. Only 30% of manufung overhead varies with the number of unts of 75 pro The special des per unit and an anal deber cost of $5 per un SOR-29 accepts the special order the company special order would not affect t company's regular production and sales What is the minimum e, the seven sales price that the company shout charge per s thave MultiCho O $24 Os O O 535 JURJADEN a manufacturing my roceeds t Ovect materiale Direct Moor Magverhead U product c $8.00 12.00 $10.00 $20.00 The company's manufacturing overhead cost my fed Only 30% of manufacturing cost of $5 per une SOR 206cepto the sowaarde the company will ha What is the mum, the break eve O O Multiple Choice $24 542 531 SOR 296 Inc. is a manufacturing company. It has received a special order for 8.000 units of its product TK-15. The normal selling price of one unit of TK-15 is $54 and its unit product cost is $20 as shown below Direct materials $8.00 Direct labor $2.00 Manufacturing overhead $10.00 Unit product cost $20.00 O 875 Mitty Ch The company t The company's manufacturing overhead cost is mostly fixed. Only 30% of manufacturing overhead varies with the number of units of TK-15 produced. The special order will require customizing the TK-15s for an additional direct materials cost of $6 per unit and an additional direct labor cost of $5 per unit. If SOR-296 accepts the special order, the company will have to lease special equipment at a cost of $88,000 to do the customization. The company has sufficient excess capacity, and the special order would not affect the company's regular production and sales. What is the minimum (i.e., the break-even) sales price that the company should charge per unit of the customized TK-15 for this special order? Multiple Choice $24 $42 $31 $35
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started