Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Hello please help me with these questions below. Thanks in advance. 1. Peach has received a special order for 11,000 units of its product. The

Hello please help me with these questions below. Thanks in advance.

1.

Peach has received a special order for 11,000 units of its product. The product normally sells for $26 and has the following manufacturing costs:

Per unit
Direct materials $6
Direct labor 4
Variable manufacturing overhead 3
Fixed manufacturing overhead

11

Unit cost

$24

Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $11,000 incremental profit?

2.

Ross has received a special order for 16,000 units of its product at a special price of $19. The product normally sells for $23 and has the following manufacturing costs:

Per unit
Direct materials $9
Direct labor 6
Variable manufacturing overhead 3
Fixed manufacturing overhead

3

Unit cost

$21

Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions