Question
Corporation makes and sells fancy remote controls. Each remote control regularly sells for $42. The following cost per remote control is based on a full
Corporation makes and sells fancy remote controls. Each remote control regularly sells for $42. The following cost per remote control is based on a full capacity of 147,000 remote controls produced each period. Direct materials Direct labor: $9 $7 Manufacturing overhead (50% variable and 50% unavoidable fixed) A special order has been received by The only selling costs tha $8 for a sale of 25,000 remote controls to an overseas customer would incur on this order would be $3 per remote control for shipping is now selling 122.000 remote controls through regular channels each period. Assume that direct labor is an avoidable cost in this decision. (Q) What should use as a minimum selling price per remote control in negotiating a price for this special order? *Corporation has a time contraint on one of its special machines. The company makes three products that use this machine. Data concerning those products appear below. MagnificoBellissimo Lovely Selling price per unit $335.13 $228.41 $199.16 Variable cost per unit $259.36 Minutes on the constraint 7.00 $173.18 3.80 $159.71 5.00 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product be willing to pay to acquire more of the constrained resource? (Round your intermediate (Q) Up to how much should calculations to 2 decimal places.)
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