B Chapter Problem 14-55 malysis of Special Order _0 14-4, 14-5) Contribution from se to e $53.848 Miami Industries received an order for a piece of special machinery from Jay Company. Just as Miami completed the machine, Jay Company declared bankruptcy, defaulted on the order, and forfeited the 10 percent deposit paid on the selling price of $72,500 Miami's manufacturing manager identified the costs already incurred in the production of the special machinery for Jay Company as follows: Direct material $16.500 Dired labor 21.400 Manufacturing overhead applied Varble $10.700 Feed 5150 16.050 Ford selling and administrative costs 5205 To Another company, Kaytell Corporation, will buy the special machinery if it is reworked to Kaytels specifications. Miami Industries offered to sell the reworked machinery to kaytell as a special order for $68,400. Kaytell agreed to pay the price when it takes delivery in two months. The additional identif able costs to rework the machinery to Kaytell's specifications are as follows: Direct material $ 6,200 Direct labor 4.200 Total $10,400 A second alternative available to Miami's management is to convert the special machinery to the star dard model, which sells for $62.500. The additional identifiable costs for this conversion are as follows Dremel 52.850 Delabor 3.300 $6,150 A third alternative for Miami Industries is to sell the machine as is for a price of $52.000. However, the potential buyer the unmodified machine does not want it for 60 days. This buyer bus obfered a 57.000 down payment, with the remainder due upon delivery. The following additional information is available regarding Miami's operations The sales commission rate on sales of standard models is 2 percent, while the rate on special orders is 3 percent Normal credit terms for sales of standard models are 2/10,net/30. This means that a customer receives a 2 percent discount if payment is made within 10 days, and payment is due no later than 30 days after billing Mest customers take the 2 percent discount. Credit terms for a special order are negotiated with the customer The allocation rates for manufacturing overhead and fixed selling and administrative consave follows . . Mwadung costs Variable Son of Grectorcos 25% of record 10% of the wordt dredator and maduring och . Normal time required for rework is one month Required 1. Denne the dollar contribution each of the three alternatives will do Minder 2 kell mains Maladies controller, what is the lowest price Manahan Dhe the influence ne facturing-head have on the site