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need answered asap Accejtino Businers at a Special Price. Power Secve Company expects to operate at 85 of productive capacity during May. The total manufacturing
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Accejtino Businers at a Special Price. Power Secve Company expects to operate at 85 of productive capacity during May. The total manufacturing costs for May for the production of 34,850 bitteries are budgeted as follows: The company has an opportunity to submit a bid for 3,000 batterion to be del vered by May 31 to a government agericy. If the contract is obtained, it is anticipated that the additional activity will not interfore with normal production during May or increase the selling on administrative expenses. What is the unit cost below which Power Serve Compony should not go in bidding on the government contract? Round your answer to two decimal places. x per unit Talladega pays a selling commission equal to 3\% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additionel shipping cost of $3 per tire. In addition, Autobahn has made the order conditional on receiving European safety certification. Taliadega estimates that this certification would cost $400,000. a. Prepare a differential analy 55 dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors. If an amount is zero, enter " 0, If required, round interim calculations to two decimal places. Determ ne whether to reject (Aiternative 1) or accept (Aiternativa 2) the special order from Autobahn Motors. b. What is the miaimum price per unit that would be financialy acceptable to ralladega? Round your answer to two decimal places. per unit Decision on Accepting Additional Business Talladega Tire and Rubber Company has capacty to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Talladega pays a seling commission equial to 3% of the selling price on North American orders, which is included in the variabie portion of the seling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $3 per tire. In addition, Autobahn has made the order conditional on recelving European safety certification. Talladega estimates that this certification would cost $400,000. 8. Prepare a differential analysis dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors. If an amount is zero, enter "o". If requlred, round Interim calculations to two decimal blaces. All work saved Step by Step Solution
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