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If possible, please show work. Bramble Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1.800 machine hours. Prices and costs
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Bramble Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1.800 machine hours. Prices and costs for each product are as follows: Widget Gadget Selling price per unit 5258 $338 Variable costs per unit Direct materials 32 43 Other direct costs 12 20 Variable Manufacturing overhead costs 38 52 Variable manufacturing overhead costs are applied at a rate of $48 per machine hour. Lawn Industries, a potential client, has offered $258 per unit to Bramble for 258 special units. These 258 units would incur the following production costs and time: Direct materials $8,752 $3,800 Other direct costs Machine hours 233 Assume that Bramble has enough excess capacity to produce the special order.Calculate what the total contribution would be if the special order from Lawn were accepted. Total contribution margin $ Assume that Bramble is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour, (Round machine hours to 2 decimal places, eg, 12.25 and final answers to decimal places, eg. 125.) Widget Gadget New Order CM per unit 5 $ CM per machine hour $ S $ $ Determine whether Bramble should produce the units for the special order instead of widget or gadget units. Bramble produce the units for the special order instead of widector gadget units. . Assume that Bramble is actually operating at 95% of full capacity. Calculate what the opportunity cost would be if Lawn's special order were accepted. Opportunity cost $ Assume that Bramble is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $35,800 to produce Lawn's special order. If the special order is accepted, calculate its effect on Bramble's profit. Net profit from doing the special orderStep by Step Solution
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