managerial accounting chapter 8

x & fx Please complete Quick Study as follows: Helix Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is operating at 75% of its capacity of 10,000 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order. Place an X in the appropriate column to identify whether the cost is relevant or irrelevant to accepting this order. Relevant Not Relevant Item a. Selling price $6 per unit b. Direct materials cost of $1 per unit c. Direct labor of $2 per unit d. Variable manufacturing overhead of $1.50 per unit e. Fored manufacturing overhead of $0.75 per unit f. Regular selling expenses of $1.25 per unit 8. Additional selling expenses of $0.50 per unit h. Administrative expenses of $0.60 per unit Refer to the data in OS 10-1. Based on financial considerations alone, should Helix accept this order at the special price? Explain and show your calculations. 3) Refer to OS 10-1 and OS 10-2. What nonfinancial factors should Helix consider before accepting this order? Explain. 3) Marathon Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a rain storm because the warehouse where they were stored developed a leak in the roof. Marathon can sell the units asis for $2 each or it can repair the units at a total cost of $18,000 and then sell them for $5 each. Should Marathon sell the units as is or repair them and then sell them? Explain. WOOD