Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Miami Company manufactures outdoor fireplaces. For the first 9 months of 2021, the company has reported the following operating results, while it was operating

image text in transcribed

Miami Company manufactures outdoor fireplaces. For the first 9 months of 2021, the company has reported the following operating results, while it was operating at 96% of plant capacity. The cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October 2021, Miami Company received a special order for 10,000 fireplaces at $60 each from Bina Company. Accepting this order would result in an additional $25,000 of shipping costs, but it would have no effect on fixed operating expenses. Sales (300,000 units) Cost of Goods Sold Gross Profit Operating Expenses Net Operating Income $27,000,000 20,250,000 6,750,000 3,000,000 $3,750,000 17. If the cost of goods sold was 40% fixed, and the operating expenses are 60% variable, what would be the minimum acceptable selling price per fireplace that should be set for any special order? $46.50 per fireplace $61.00 per fireplace $77.50 per fireplace $90.00 per fireplace None of the above

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_2

Step: 3

blur-text-image_3

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 Information Systems Managing the Digital Firm

Authors: Ken Laudon, Jane P. Laudon

13th edition

133050696, 978-0133050691

More Books

Students also viewed these Accounting questions

Question

5. Analyze retention and turnover issues in international business.

Answered: 1 week ago