Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Are these correct? + need help on part C Capitol has received a special order for 2,040 units of its product at a special price

Are these correct? + need help on part C

Capitol has received a special order for 2,040 units of its product at a special price of $154. The product normally sells for $204 and has the following manufacturing costs:

image text in transcribedimage text in transcribed

Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per unit $ 54 34 24 Unit cost S 156 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Capitol accepts the order, what effect will the order have on the company's short-term profit? ncrease in Profit $85,680 b. What minimum price should Capitol charge to achieve a $44,000 incremental profit? (Round your answer to 2 decimal places.) Minimum Price 133.57

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

Finance For The People Getting A Grip On Your Finances

Authors: Paco De Leon

1st Edition

0143136259, 9780143136255

More Books

Students also viewed these Accounting questions

Question

What are accounts?

Answered: 1 week ago

Question

Discuss the various types of leasing.

Answered: 1 week ago

Question

Define the term "Leasing"

Answered: 1 week ago

Question

What do you mean by Dividend ?

Answered: 1 week ago

Question

What is database?

Answered: 1 week ago