Jeff Cablesource makes Cat 5 cables and sells them in boxes of 1000ft. Mass Cable has offered to sell the 2200 boxes to Jeff for $225 each. Below are Jeff costs to make a box

Status Quo Per unit Alternative Per unit

Direct material $41.00

Direct Labor $101.00

Variable OH $28.00

Fixed Overhead $88.00 $193,600.00

Accepting the order would eliminate fixed overhead of $100,000. Do an analysis showing total costs at status quo and if you take the order....Show me the cost per unit now vs. accepting the offer. Jeff Sells the boxes for $350.

Should Jeff take the order? Explain. $0.00

What is current Breakeven Units and Sales?

Show me an income statement that checks your Breakeven Sales? SALES D MTL LABOR V OH CM FC

Profit