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Alton Inc. is working at full production capacity producing 29,000 units of a unique product. Manufacturing costs per unit for the product are as follows:
Alton Inc. is working at full production capacity producing 29,000 units of a unique product. Manufacturing costs per unit for the product are as follows: Direct materials Direct labor Manufacturing overhead Total manufacturing cost per unit $10 9 11 530 The per-unit manufacturing overhead cost is based on a 55 variable cost per unit and $174,000 fixed costs. The nonmanufacturing costs, all variable, are $8 per unit, and the sales price is $45 per unit. Sports Headquarters Company (SHC) has asked Alton to produce 6.500 units of a modification of the new product. This modification would require the same manufacturing processes. However, because of the nature of the proposed sale, the estimated nonmanufacturing costs per unit are only $4 (not $8)Alton would sell the modified product to SHC for $35 per unit Required 1:a. Calculate the contribution margin for 6.500 units for both the current and special order 16. Should Alton produce the special order for SHC? 2. Suppose that Alton Inc had been working at less than full capacity to produce 24,100 units of the product when SHC made the offer What is the minimum price per unit thot Alton should accept for the modified product under these conditions Complete this question by entering your answers in the tabs below. Red 1A Reg 11 Reg 2 Calculate the contribution margin for 6,500 units for both the current and special order. Contribution Margin Current Special order 15 Complete this question by entering your answers in the tabs below. Red 1A Reg 13 Reg 2 Should Alton produce the special order for SHC? Ores ONO Reg 1A Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Suppose that Alton Inc had been working at less than full capacity to produce 24,100 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? (Round your answer to 2 decimal places) Mirum price Reg 1B
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