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based on your answers to answers 2&3, should LP accept the southeast order 1. Calculate Incremental variable, or marginal, cost per chair to LP pf

based on your answers to answers 2&3, should LP accept the southeast order
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1. Calculate Incremental variable, or marginal, cost per chair to LP pf accepting the order from Southesat MC = Direct Labor Cost + Material Costs $2.25 + $2.30 $4.55 marginal cost per chair 2. What assumptions did you make in calculating the incremental variable cost in Question 1? What additional information would be helpful in making these calculations? The assumptions that were made were that 1) No additional payments of overtime existed, 2) There would be no change in the cost of labor and 3) There would also be no change in the cost of material. In addition, we determined that any decisions made would not be swayed by administrative cost or by the seller. We also know that administrative cost and plant are considered indirect cost. Lastly, all indirect cost will be allocated to help estimate the product size. 3. Based on your answers to 2 & 3, should LP accept the southeast order 1. Calculate Incremental variable, or marginal, cost per chair to LP pf accepting the order from Southesat MC = Direct Labor Cost + Material Costs $2.25 + $2.30 $4.55 marginal cost per chair 2. What assumptions did you make in calculating the incremental variable cost in Question 1? What additional information would be helpful in making these calculations? The assumptions that were made were that 1) No additional payments of overtime existed, 2) There would be no change in the cost of labor and 3) There would also be no change in the cost of material. In addition, we determined that any decisions made would not be swayed by administrative cost or by the seller. We also know that administrative cost and plant are considered indirect cost. Lastly, all indirect cost will be allocated to help estimate the product size. 3. Based on your answers to 2 & 3, should LP accept the southeast order

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