8 00 Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 10,000 units follow. The company targets a 12.5% markup on total cost. 2.72 Variable Costs per Unit points Direct materials $ 100 Direct labor 25 Overhead 20 Selling, general and administrative 5 eBook Fixed Costs (total) Overhead $ 470,000 Selling, general and administrative 430,000 Print References 1. Compute the total cost per unit if 10,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (150,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Annual Total $ 15.00 $ 2,250,000 2.00 300,000 4.00 600,000 2.50 375,000 6.50 975,000 2.00 300,000 1.50 $ 3.00 225,000 $ 450,000 The company receives a special offer for 15,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $60,000 and incremental fixed general and administrative costs of $4,500. (a) Compute the income or loss for the special offer. (b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special offer. Note: Round your "Per Unit" answers to 2 decimal places. SPECIAL OFFER ANALYSIS Contribution margin Income (loss) Per Unit Total < Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Should the company accept or reject the special offer? Should the company accept or reject the special offer? < Required A Required B > 10 2.72 points eBook Pardo Company produces a single product and has capacity to produce 120,000 units per month. Costs to produce its current monthly sales of 80,000 units follow. The normal selling price of the product is $100 per unit. A new customer offers to purchase 20,000 units for $75 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. Direct materials Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals Hint Print References Per Unit Costs at 80,000 Units $ 12.50 29.00 10.00 17.50 13.00 $ 82.00 $ 6,560,000 $ 1,000,000 2,320,000 800,000 1,400,000 1,040,000 (a) Compute the income from the special offer. (b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income for the special offer. Note: Round your "Per Unit" answers to 2 decimal places. SPECIAL OFFER ANALYSIS Variable costs Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit Total Required A Required B > Pardo Company produces a single product and has capacity to produce 120,000 units per month. Costs to produce its current monthly sales of 80,000 units follow. The normal selling price of the product is $100 per unit. A new customer offers to purchase 20,000 units for $75 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. Direct materials Direct labor Variable overhead Fixed overhead Fixed general and administrative Totals (a) Compute the income from the special offer. (b) Should the company accept the special offer? Per Unit Costs at 80,000 Units $ 12.50 $ 1,000,000 29.00 10.00 2,320,000 800,000 17.50 13.00 1,400,000 1,040,000 $ 82.00 $ 6,560,000 Complete this question by entering your answers in the tabs below. Required A Required B Should the company accept the special offer? Should the company accept the special offer? < Required A Required B > 2.8 points 11 HH Electric reports the following information. Direct labor rate Materials-related overhead $ 30 Non-materials-related overhead $ 15 Target profit margin (on both conversion and direct materials) per DLH per DLH 5% of direct materials cost 20% a. Compute the time charge per hour of direct labor. b. Compute the materials markup percentage. eBook c. What price should the company quote for a job requiring four direct labor hours and $580 in materials? a. Time charge per hour of direct labor Print b. Materials markup c. Time and materials price References %