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Kid Trax located in Madison, Wisconsin manufactures electric riding vehicles for children. A customer has submitted a special order for 2000 vehicles a special price
Kid Trax located in Madison, Wisconsin manufactures electric riding vehicles for children. A customer has submitted a special order for 2000 vehicles a special price of $75. The vehicle normally sells for $100, and has the following manufacturing costs: Direct Materials $30 Direct Labor $15 Variable Manufacturing Overhead $10 Fixed Manufacturing Overhead $30 Unit cost $85 Assume that Kid Trax has sufficient capacity to fill the order without harming normal production and sales. If Kid Trax accepts the order what effect will have on the company's profit? Multiple Choice $40,000 increase $30,000 decrease O $20.000 decrease Mi-TM Corporation is a manufacturer of high-quality industrial equipment including power washers and generators. Mi-T-M has received a special order for 200 generators. The generators normally sell for $2,000 and have the following manufacturing costs Purun $550 309 400 Drect materials vector Variable manufacturing overheng od manufacturing overhead Unit Cost 50g Assume that M-T-M has sufficient capacity to fill the order without harming normal production and sales. What minimum price should MITM charge to achieve a $25.000 increase in profit
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