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I need help with this one please LECTURE EXAMPLE Toastem manufactures small appliances. The costs of manufacturing these appliances are listed below. Toastem has received
I need help with this one please
LECTURE EXAMPLE Toastem manufactures small appliances. The costs of manufacturing these appliances are listed below. Toastem has received a special order for 2.400 toasters from an appliance retailer whose usual supplier cannot supply the toasters because of a labor strike. Toastem would not incur any variable marketing costs on the special order. The retailer has offered Toastem $10 per toaster. Toastem normally charges S13 per toaster. The following costs are based on a production level of 30,000 toasters per year. PER UNIT TOTAL $ 3.00 350 2.50 1.50 $10.50 $ 90,000 105.000 75.000 45000 5315.000 Manufacturing costs Direct labor Direct materials Variable overhead Fixed overhead Total Marketing costs: Variable marketing Fixed marketing Total Total product costs 5 1.00 0.75 $ 175 $12.25 $ 30,000 22.500 $ 52.500 $367 500 If Toastem has the capacity to produce 35,000 toasters per year, should they accept the special order? If Toastem has the capacity to produce 30,000 toasters per year, should they accept the special order Step by Step Solution
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