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Annabelle Co. manufactures product C222 and receives a special-oder for it. The customer does not operate in the same market as Annabelle. The following information
Annabelle Co. manufactures product C222 and receives a special-oder for it. The customer does not operate in the same market as Annabelle. The following information was made available to you: Additional data: The normal selling price per unit of product C222 is $53.00 Price per unit offered by the customer for the special ord $31.50 The company's capacity is based on machine hours. Monthly capacity: 15000 machine hours Capacity currently used Required 1- Calculate the available capacity that Annabelle has in number of machine hours. 2- Calculate the number of machine hours that would be required if the special order is accepted. 3- Calculate the number of machine hours lost if the order is accepted. 4- Based on your answer to (3), determine the number of units of regular sales that will be lost is the special order is accepted. 5- Calculate the contribution margin per unit of special order
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