' chrome File Edit View History Bookmarks Profiles Tab Window Help EB ? Q 8 0 Mon Dec4 1:05 PM . 'v Amtrak-Reservations-Selec x m QuestionE-HW CH 12 and 11 X n Course Hero x I + V a C' i ezto.mheducation.com/ext/map/index.htm|'?_con:con&externa|_browser:0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2... S Q Q] a} I] o Hw CH 12 and 14 0 Saved Help Saves. Exit Submit 3 Required information Problem 14-45 Special Order; Financial and Production Considerations (LO 14-4, 14-5) [The following information applies to the questions displayed below] Part 3 013 Jupiter Corporation manufactures skateboards. Several weeks ago. the rm received a special-order inquiry from Venus. inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order 3 can be completed in three months. The cost data for Jupiter's model no. 43 skateboard follow. paints Direct material 5 5.20 Direct labor: 0.25 hours at $9.00 2.25 E Total manufacturing overhead: 7 0.5 hauza at 520 1000 eBook Total $20.45 ill Print Additional data: E] . The normal selling price of model no. 43 is $26.50: however. Venus has offered Jupiter only $15.75 because ofthe large quantity it is willing to purchase. - Venus requires a modication of the design that will allow a $2.10 reduction in direct-material cost. . Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will be discarded once the special order is completed. - Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. This gure is based. in part. on budgeted yearly fixed overhead of $750,000 and planned production activity of 60.000 machine hours (5,000 per month). - Jupiter will allocate $1,800 of existing xed administrative costs to the order as \"... part of the cost of doing business." References Problem 14-45 Part 3 3. What options might Jupiter consider it management truly wanted to do business with Venus in hopes of building a long-term relationship with the rm? (Vou may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) aeogeeom Chrome File Edit View History Bookmarks Profiles Tab Window Help 14 2 Q 9 Mon Dec 4 1:05 PM O Amtrak - Reservations - Select X M Question 5 - HW CH 12 and 14 X Course Hero X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2... G Q x Ic Update : PG HW CH 12 and 14 i Saved Help Save & Exit Submit can be completed in three months. The cost data for Jupiter's model no. 43 skateboard follow. 5 Direct material $ 8.20 Direct labor: 0.25 hours at $9.00 2.25 Total manufacturing overhead: me 0.5 hours at $20 10.00 Total $20 . 45 Part 3 of 3 Additional data: 3 points . The normal selling price of model no. 43 is $26.50; however, Venus has offered Jupiter only $15.75 because of the large quantity it is willing to purchase. . Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. . Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will be discarded once the special order is Book completed. . Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned production activity of 60,000 machine hours Print (5,000 per month). . Jupiter will allocate $1,800 of existing fixed administrative costs to the order as "... part of the cost of doing business." References Problem 14-45 Part 3 3. What options might Jupiter consider if management truly wanted to do business with Venus in hopes of building a long-term elationship with the firm? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Completely ignore the additional setup costs and the new device costs, as these are fixed in nature 2 Outsourcing some units 2 Acquiring more machine capacity 2 Sacrificing some current business in the hope that a long-term relationship with Venus can be established and proves to be profitable Gra