Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all (The following data is used in questions 41 and 42) Beesly Corporation has received a request for a special order of 6,000 units

answer all image text in transcribed
image text in transcribed
(The following data is used in questions 41 and 42) Beesly Corporation has received a request for a special order of 6,000 units of product ART77 for $32.20 each. The normal selling price of this product is $33.45 each, and the units would need to be modified slightly for the customer. The normal unit product cost of product ART77 is computed as follows: Direct materials $15.00 Direct labor 3.80 Variable manufacturing overhead 1.40 Fixed manufacturing overhead 2.10 Unit product cost $22.30 The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product ART77 that would increase the variable costs by $4.90 per unit and that would require a one-time investment of $15,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Based on this data, the income (loss) of accepting this special order would be: (The following data is used in questions 41 and 42) Beesly Corporation has received a request for a special order of 6,000 units of product ART77 for $32.20 each. The normal selling price of this product is $33.45 each, and the units would need to be modified slightly for the customer. The normal unit product cost of product ART77 is computed as follows: Direct materials $15.00 Direct labor 3.80 Variable manufacturing overhead 1.40 Fixed manufacturing overhead 2.10 Unit product cost $22.30 The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product ART77 that would increase the variable costs by $4.90 per unit and that would require a one-time investment of $15,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. What is the lowest selling price per unit Beesly Corporation should consider for this special order (ie the price below which incremental costs would exceed revenues associated with this order)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Principles And Practice Of Auditing

Authors: George Puttick, Sandra Van Esch

8th Edition

0702156914, 978-0702156915

More Books

Students also viewed these Accounting questions

Question

=+a. How would you respond to each of Walkers questions?

Answered: 1 week ago

Question

2. Identify conflict triggers in yourself and others

Answered: 1 week ago