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In Class Exercise 7-2 (LO 3) Keebee, Inc. has received a special order for 5,000 units of its laptop computers at a discounted price of
In Class Exercise 7-2 (LO 3) Keebee, Inc. has received a special order for 5,000 units of its laptop computers at a discounted price of $600 each. The laptop, which normally sells for $1,000, has the following manufacturing costs. Cost per Unit Direct materials $ 250 Direct labor 150 Variable manufacturing overhead 100 Fixed manufacturing overhead 200 Unit cost $ 700 1. Assume Keebee has enough extra capacity to fill the order without affecting the production or sale of its product to regular customers. If Keebee accepts this offer, what effect will the order have on the company's short-term profit? ver all incremental costs, 2. If Keebee is at full capacity, what price would be needed to including opportunity costs
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