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Exercise 16-11 Accept special sales order? LO 2, 3 integrated Masters, ic an s present y operating at 80% of capacity and man tact mg
Exercise 16-11 Accept special sales order? LO 2, 3 integrated Masters, ic an s present y operating at 80% of capacity and man tact mg 115 000 units ot a patented electronc copo et The cost s u ture ofthe corpore t s as S 7.70 per unit 770 per unit 9.70 per unt $529.000 per year Raw materials Dieect labor Varnable overhead Foxed overhead An talian firm has offered to purchase 21,700 of the components at a price of $32 5 per unt, FOB MI's plant. The normal selling price is $37 1 per component This special order will not affect any of Mrs "mormar business Management calculated that the cost per component is $29.7, so it is reluctant to accept this special order Required: a. Calculate the fsed overhead per unt? (Round your answer to 2 decimal places.) b. Is the cost calculation appropriate? O Yes e. Should the offler from the talian 1rm be accepted? O The offer should be accepted O The offer should not be accepted
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