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A company sells beds and can produce 1,000 units per month for a xed cost of 204,141. The variable cost is 365 per unit and

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A company sells beds and can produce 1,000 units per month for a xed cost of 204,141. The variable cost is 365 per unit and the current demand is 700 units which sell for 938 per unit. The company is approached by a hotel for an order of 200 beds at 657 per unit. Answer the following questions: Is the xed cost relevant when deciding to accept or reject this special order'? V How much additional contribution will be generated by accepting this order? Per unit (E): In total (E): Should the company accept this special order from the hotel? V Velstrom Ltd is considering outsourcing one of its products rather than producing it in its factory. The business allocates part of the total rental charge of the factory, based on floor area, on the section responsible for making the product. The section bears a charge of 20,000 per year. If the section were closed, the oor space released would be used for warehousing and, as a result, the business would give up the tenancy of an existing warehouse for which it is paying 25,000 a year. A business has approached Velstrom Ltd to offer 22,000 a year to sublet the released factory space. What will be the relevant benefit of releasing the factory space? (Enter an integer.) Pemberley Marine Ltd has a boat that it acquired some months ago at a cost of 8,000. The boat needs a replacement engine before it can be used. It is possible to buy a new engine for 5,500. This would take 8hours to t by a technician who is paid 16 an hour. At present the business is vew busy and the technician could work on other boats. The normal charge out rate for the technician is 80 per hour. Without the new engine, the boat could be sold for an estimated 9,500. What is the minimum price at which the business should sell the boat with a new engine tted? (Enter an integer.) The minimum price is: E Staverton Manufacturers Ltd has the following materials in inventories: Y50 Y60 No. of units held 100 150 Purchase cost per unit 7 12 Net realisable value 6 5 Replacement cost 8 4 The company has been asked to tender {or a contract that requires 200 units of Y50 and 100 units of Y60. Y50 cannot be used for any other purpose within the business except the new contract. Y60 is in frequent use by the company. O A. 2,600 0 B. 2,100 0 C. 1,900 0 D. 1,800

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