Miami Industries received an order for a piece of special machinery from Jay Company Just as Miami completed the machine, Jay Company declared bankruptcy, defaulted on the order, and forfeited the 10 percent deposit paid on the selling price of $72,500 Miamis manufacturing manager identified the costs already incurred in the production of the special machinery for Jay Company as follows Direct material $ 16,600 Direct labor 21,400 Manufacturing overhead applied Variable $ 10,700 Fixed 5,350 16,050 Fixed selling and administrative costs 5,405 Total $ 59,455 Another company, Kaytell Corporation, will buy the special machinery if it is reworked to Kaytells specifications Miami Industries offered to sell the reworked machinery to Kaytell as a special order for $68,400 Kaytell agreed to pay the price when it takes delivery in two months The additional identifiable costs to rework the machinery to Kaytells specifications are as follows Direct material $ 6,200 Direct labor 4,200 Total $ 10,400 A second alternative available to Miamis management is to convert the special machinery to the standard model, which sells for $62,500 The additional identifiable costs for this conversion are as follows Direct material $ 2,850 Direct labor 3,300 Total $ 6,150 A third alternative for Miami Industries is to sell the machine as is for a price of $52,000 However, the potential buyer of the unmodified machine does not want it for 60 days This buyer has offered a $7,000 down payment, with the remainder due upon delivery The following additional information is available regarding Miamis operations The sales commission rate on sales of standard models is 2 percent, while the rate on special orders is 3 percent Normal credit terms for sales of standard models are 2 10, net 30 This means that a customer receives a 2 percent discount if payment is made within 10 days, and payment is due no later than 30 days after billing Most customers take the 2 percent discount Credit terms for a special order are negotiated with the customer The allocation rates for manufacturing overhead and fixed selling and administrative costs are as follows Manufacturing costs Variable 50 of direct labor cost Fixed 25 of direct labor cost Fixed selling and administrative costs 10 of the total of direct material, direct labor, and manufacturing overhead costs Normal time required for rework is one month Required Determine the dollar contribution each of the three alternatives will add to Miami Industries before tax profit If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell Required 1 Determine the dollar contribution each of the three alternatives will add to Miami Industries' before tax profit 2 If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell 3 Indicate which statements are true and which statements are false Answer is not complete Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Determine the dollar contribution each of the three alternatives will add to Miami Industries' before tax profit Net Contribution $ 53,848 Sell to Kaytell as special order Convert to standard model Sell as special order as is 51,575 $ $ 50,820 Required 1 Determine the dollar contribution each of the three alternatives will add to Miami Industries' before tax profit 2 If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell 3 Indicate which statements are true and which statements are false Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell (Round your intermediate calculations and final answer to nearest whole dollar ) Lowest price $ 53,848

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Miami Industries received an order for a piece of special machinery from Jay Company  Just as Miami completed the machine, Jay Company declared bankruptcy, defaulted on the order, and forfeited the 10 percent deposit paid on the selling price of $72,500  Miamis manufacturing manager identified the costs already incurred in the production of the special machinery for Jay Company as follows  Direct material $ 16,600 Direct labor 21,400 Manufacturing overhead applied  Variable $ 10,700 Fixed 5,350 16,050 Fixed selling and administrative costs 5,405 Total $ 59,455 Another company, Kaytell Corporation, will buy the special machinery if it is reworked to Kaytells specifications  Miami Industries offered to sell the reworked machinery to Kaytell as a special order for $68,400  Kaytell agreed to pay the price when it takes delivery in two months  The additional identifiable costs to rework the machinery to Kaytells specifications are as follows  Direct material $ 6,200 Direct labor 4,200 Total $ 10,400 A second alternative available to Miamis management is to convert the special machinery to the standard model, which sells for $62,500  The additional identifiable costs for this conversion are as follows  Direct material $ 2,850 Direct labor 3,300 Total $ 6,150 A third alternative for Miami Industries is to sell the machine as is for a price of $52,000  However, the potential buyer of the unmodified machine does not want it for 60 days  This buyer has offered a $7,000 down payment, with the remainder due upon delivery  The following additional information is available regarding Miamis operations  The sales commission rate on sales of standard models is 2 percent, while the rate on special orders is 3 percent  Normal credit terms for sales of standard models are 2 10, net 30  This means that a customer receives a 2 percent discount if payment is made within 10 days, and payment is due no later than 30 days after billing  Most customers take the 2 percent discount  Credit terms for a special order are negotiated with the customer  The allocation rates for manufacturing overhead and fixed selling and administrative costs are as follows  Manufacturing costs  Variable 50  of direct labor cost Fixed 25  of direct labor cost Fixed selling and administrative costs 10  of the total of direct material, direct labor, and manufacturing overhead costs Normal time required for rework is one month  Required  Determine the dollar contribution each of the three alternatives will add to Miami Industries before tax profit  If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell  Required  1  Determine the dollar contribution each of the three alternatives will add to Miami Industries' before tax profit  2  If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell  3  Indicate which statements are true and which statements are false  Answer is not complete  Complete this question by entering your answers in the tabs below  Required 1 Required 2 Required 3 Determine the dollar contribution each of the three alternatives will add to Miami Industries' before tax profit  Net Contribution $ 53,848 Sell to Kaytell as special order Convert to standard model Sell as special order as is 51,575 $ $ 50,820 Required  1  Determine the dollar contribution each of the three alternatives will add to Miami Industries' before tax profit  2  If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell  3  Indicate which statements are true and which statements are false  Answer is complete but not entirely correct  Complete this question by entering your answers in the tabs below  Required 1 Required 2 Required 3 If Kaytell makes Miami Industries a counteroffer, what is the lowest price Miami should accept for the reworked machinery from Kaytell  (Round your intermediate calculations and final answer to nearest whole dollar ) Lowest price $ 53,848

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Miami Industries received an order for a piece of special machinery from Jay Company. Just as Miami

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