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Can you answer this two problem please Melendez Inc. makes a product with the following per-unit information: PerUnit Sellingprice 100 $ Variablecosts 60 Contributionmargin 40
Can you answer this two problem please Melendez Inc. makes a product with the following per-unit information: PerUnit Sellingprice 100 $ Variablecosts 60 Contributionmargin 40 $ 8. How many units must the company sell in order to break even? ________________ Melendez received an offer from another company tp purchase 1,000 units at a price of $70. Melendez' variable costs on this order will be lowered by $10. Melendez has enough extra capacity to handle the order without affecting regular production. 9. How much is the "relevant outlay" needed to produce this special order? $_______________ 10. Is there an opportunity cost associated with the special order? Yes or no and WHY? ___ 11. Should they accept or reject the special order and by how much? ___________________________ better by $_____________ accept or reject amount NOW ASSUME that Melendez is operating AT CAPACITY at the time of the order and that this order will displace regular production. 12. Is there an opportunity cost? Yes or No and WHY? _____ 13. What is the "real cost" (as we used that term in this course) of producing the order? $_____________________ 14. Should they accept or reject the special order and by how much? ___________________________ better by $_____________ accept or reject amount
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