Answered step by step
Verified Expert Solution
Question
1 Approved Answer
lo ApowerREC - Google Drive C ApowerREC - Google Drive XC-X * ACOK13 - Management Account x + https://ju.inspera.com/player/?assessmentRunid=87280042&context=exam&selected anguageld=2#/section/5386885234889/question/89966774 20011218-6044 3 hours, 39 minutes
lo ApowerREC - Google Drive C ApowerREC - Google Drive XC-X * ACOK13 - Management Account x + https://ju.inspera.com/player/?assessmentRunid=87280042&context=exam&selected anguageld=2#/section/5386885234889/question/89966774 20011218-6044 3 hours, 39 minutes remaining 10 Question 5 Steelers AB manufactures a product called Bullet-Proof. The manufacturing costs to produce one unit of the product is (in SEK): Direct material: 1.30 SEK Direct labour: 1.50 SEK Variable manufacturing costs: 0.40 SEK Fixed manufacturing costs: 1.00 SEK Total manufacturing costs: 4.20 SEK The fixed administration and sales costs are 65,000 SEK per year. Sales commission per unit sold is 5%. Selling price of each unit is 5 SEK A salesman at Steelers AB is contacted by a potential new customer, Nuts-and-Bolts AB. Nuts-and-Bolts AB offered Steelers AB a one-time order of 1,000 units at a price of 4 SEK/unit. Required (show all your calculations below and write in your own words): (a) Assuming Steelers AB has free capacity, should Steelers AB accept this offer? Why? (6 points) (b) Explain in full two (2) non-financial factors Steelers AB should consider in making such a decision? (4 points) E Help Fill in your answer below indicating clearly (a) and (b): Format - BI U XXL + + 3 :: 2 X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started