Fundamental-of-cost-5Th.pdf + File | C:/Users/NIUSHA/Desktop/Fundamental-of-cost-5Th.pdf Contents 167 of 754 H Type here to search 136 Page view Part II Cost Analysis and Estimation A Read aloud Draw Highlight Erase Assume that Cold Rock sells ice cream for $4.80 per gallon. The cost of each gallon follows: (L.O. 1, 2) 4-33. Pricing Decisions Materials Labor $1.80 .60 Variable overhead .30 Fixed overhead ($24,000 per month, 20,000 gallons per month) 1.20 Total costs per gallon $3.90 One of Cold Rock's regular customers asked the company to fill a special order of 400 gallons at a selling price of $3.60 per gallon for a fund-raising picnic for a local charity. Cold Rock has ca- pacity to fill it without affecting total fixed costs for the month. Cold Rock's general manager was concerned about selling the ice cream below the cost of $3.90 per gallon and has asked for your advice. Required a. b. C. Prepare a schedule to show the impact on Cold Rock's profits of providing 400 gallons of ice cream in addition to the regular production and sales of 20,000 gallons per month. Based solely on the data given, what is the lowest price per gallon at which the ice cream in the special order could be sold without reducing Cold Rock's profits? What other factors might the general manager want to consider in setting a price for the special order? (L.O. 1, 2) 4-34. Pricing Decision Mother's Bottlers, Inc., is a small bottling company that bottles and sells cold teas for $5 per unit. The cost of each unit follows: O I Materials $1.50 Labor 1.00 Variable overhead 0.50 Fixed overhead ($20,000 per month, 20,000 units per month) Total costs per unit. 1.00 $4.00 One of Mother's regular customers asked the company to fill a special order of 2,000 units at a selling price of $3.50 per unit. Mother's can fill the order using existing capacity without affecting total fixed costs for the month. However, Mother's manager was concerned about selling at a price below the $4.00 cost per unit and has asked for your advice. Required a. b. C. Prepare a schedule to show the impact of providing the special order of 2,000 units on Mother's profits in addition to the regular production and sales of 20,000 units per month. Based solely on the data given, what is the lowest price per unit at which the bottled teas could be sold for the special order without reducing Mother's profits? What other factors might Mother's managers want to consider in setting a price for the special order? (L.O. 1, 2) 4-35. Special Order H {" 36C Sunny ENG 11:21 AM 7/29/2021