Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marcy has received a special order for 3,300 units of its product at a special price of 5162. The produd normally els te 570 watt

image text in transcribed
image text in transcribed
Marcy has received a special order for 3,300 units of its product at a special price of 5162. The produd normally els te 570 watt the following manufacturing costs: 34:48 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 67 40 25 12 $144 Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and al freddo unavoidable. a. If Marcy accepts the order, what effect will the order have on the company's short-term profit? 59,400 Increase in Profit Saved B b. What minimum price should Marcy charge to achieve a $115,500 incremental profit? Minimum Price 01:34:27 c. Now assume Marcy is currently operating at full capacity and cannot fill the order without harming normal production an Marcy accepts the order, what effect will the order have on the company's short-term profit? Marcy has received a special order for 3,300 units of its product at a special price of 5162. The produd normally els te 570 watt the following manufacturing costs: 34:48 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 67 40 25 12 $144 Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and al freddo unavoidable. a. If Marcy accepts the order, what effect will the order have on the company's short-term profit? 59,400 Increase in Profit Saved B b. What minimum price should Marcy charge to achieve a $115,500 incremental profit? Minimum Price 01:34:27 c. Now assume Marcy is currently operating at full capacity and cannot fill the order without harming normal production an Marcy accepts the order, what effect will the order have on the company's short-term profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Text Problems And Cases

Authors: M Y Khan, P K Jain

6th Edition

125902668X, 978-1259026683

More Books

Students also viewed these Accounting questions

Question

5. How is Karen Slagles argument an example of confirmation bias?

Answered: 1 week ago