Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

May you please help with explanations for each and how to get the contribution Problem B Hi-Tech is the creator of YGo, a technology that

May you please help with explanations for each and how to get the contribution

image text in transcribed
Problem B Hi-Tech is the creator of YGo, a technology that weaves silver into the fabric to kill bacteria and odour on clothing while managing heat. YGO has become very popular in undergarments for sports activities. Operating at capacity, Hi-Tech can produce 500,000 undergarments each year. The normal selling price is $10 per unit The per unit cost for each unit is as follows: Per unit Direct materials $2.00 Direct labour 0.50 Variable manufacturing overhead 100 Fixed manufacturing overhead 1,25 Variable selling expenses 025 The Canadian armed forces (CAF) has approached Hi Tech and expressed an interest in purchasing 75,000 YGO undergarments for soldiers stationed in hot climates. Required: To answer a, b, and c, use the minimum price model: Minimum price model Variable cost XX Plus: Lost CM on regular sales E Equals Total minimum price (TMP) XX Unit price (TMP/ units in special order) a) If Hi-Tech is operating at 100% capacity what is the minimum price to charge? b) If Hi- Tech is operating at 90% capacity what is the minimum price to charge? c) If Hi-Tech is operating at 70% capacity what is the minimum price to charge? (1) Assume High Tech is operating at 90% capacity and Hi-tech receives a special order from the CAF for 75,000 YGos at a selling price of $8.00 per unit. Compute the increase in prot (or loss) if High Tech accepts the order

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

Financial Accounting Fundamentals

Authors: John Wild

4th Edition

0078025591, 9780078025594

More Books

Students also viewed these Accounting questions

Question

What is the effect of word war second?

Answered: 1 week ago