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Lightyear currently rocking its main product se and one back cushion with the following per set of archions one seat and one back Direct materials
Lightyear currently rocking its main product se and one back cushion with the following per set of archions one seat and one back Direct materials $ 1.00 Direct labour 10.00 Variable overhead 5.00 Fixed overhead 8.00 Total $24.00 Buzz Company has contacted Lightyear with an offer to sell it 5,000 sets of cushions for $ 18.00 each Lightyear buys the cushions , $ of the fixed overhead per unit will be allocated to other products . a) What is the total variable overhead savings ? $ b) Determine the incremental per unit income or loss ( ) Lightyear would realize if it accepted the of What is the maximum Buzz Company would be willing to pay Lightyear set of cushions
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