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5 and 6. thank you! Exercise 6-6A Special order decision LO 6-2 Perez Concrete Company pours concrete slabs for single family dwellings. Lancing Construction Company,
5 and 6. thank you! Exercise 6-6A Special order decision LO 6-2 Perez Concrete Company pours concrete slabs for single family dwellings. Lancing Construction Company, which operates outside Perez's normal sales territory, asks Perez to pour 48 slabs for Lancing's new development of homes. Perez has the capacity to build 330 slabs and is presently working on 150 of them. Lancing is willing to pay only $2,540 per slab Perez estimates the cost of a typical Job to include unit-level materials, $810, unit-level labor, $460, and an allocated portion of facility level overhead, $1,350. Required Calculate the contribution to profit from the special order. Should Perez accept or reject the special order to pour 48 slabs for $2,540 each? Contribution to profit Should Perez accept or reject the special order? Exercise 6-7A Special order decision LO 6-2 Zachary Company manufactures a personal computer designed for use in schools and markets it under its own label. Zachary has the capacity to produce 35,000 units a year but is currently producing and selling only 20,000 units a year. The computer's normal selling price is $1.670 per unit with no volume discounts. The unit-level costs of the computer's production are $590 for direct materials, $100 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product and facility-level costs incurred by Zachary during the year are expected to be $2,200,000 and $820,000, respectively. Assume that Zachary receives a special order to produce and sell 3,150 computers at $1.250 each. Required Calculate the contribution to profit from the special order. Should Zachary accept or reject the special order? Contribution to profit Should Zachary accept or reject the special order
5 and 6. thank you!
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