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Hi there, Could someone please help me solve Hart Company sells and delivers oice furniture across Western Canada. The costs associated with the acquisition and

Hi there,

Could someone please help me solve

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Hart Company sells and delivers oice furniture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below: Insurance $ 3,245 Licences $ 225 Taxes {vehicle}. $ $30 Garage rent for parking {per truck) $ 1.300 Depreciation [$21500 t 5 years] $ 5,500 Gasoline, oil. tires, and repairs 3; 0.23i'km Required: 1. Assume that Hart Company owns one truck that has been driven 26.000 kilometres during the rst year. Compute the average cost per kilometre of owning and operating the truck. {Round your answer to 2 decimal places} 2. Not available in Connect. 3. Assume that the company decides to use the truck during the second year. Near year-end, an order is received from a customer over 1,000 kilometers away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? {Round your answer to 2 decimal places.) 4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a second truck. The total kilometers driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck? -:I Sato Jeweliers has had a request for a special order for 10 gold bangles for the members of a wedding party. The normal selling price of a gold bangle is $450.00 and its unit product cost is $300.00, as shown below: Direct materials $ 15100 Direct labour 93.00 Manufacturing 45 00 overhead ' Unit product cost $ 300.00 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewellery is produced in any given period. However, $9 of the overhead is variable, depending on the number of bangles produced. The customer would like special filigree applied to the bangles. This filigree would require additional materials costing $8 per bangle and would also require acquisition of a special tool costing $585 that would have no other use once the special order was completed. This order would have no effect on the company's regular sales, and the order could be lled using the company's existing capacity without affecting any other order. Required: a. What effect would accepting this order have on the company's operating income if a special price of $400.00 is offered per bangle for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places} :I:| b. Should the special order be accepted at this price? OYes 0N0

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