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please answer 6, I have 5 done ($54.50) but I dont know how to solve the following question 6! Use the following information to answer
please answer 6, I have 5 done ($54.50) but I dont know how to solve the following question 6! Use the following information to answer questions 5 and 6: The Melrose Company produces a single product called product C. Melrose has the capacity to produce 70,000 units of Product Ceach year. The selling price and cost per unit are presented below: The regular selling price of one unit of Product C is $100. Direet materials. S20 Direct labor........ S17 Variable manufacturing overhead S13 Fixed manufacturing overhead S14 Variable selling expense... $12 Fixed selling expense A special order las been received by Melrose from Moore Company to purchase 7.000 units of Product during the upcoming year. If this special order is accepted, the variable selling expense will be reduced by 754. Melrose will need to purchase a specialized machine to engrave the Moore name on each unit of product C in the special order. The machine will cost $10,500 and will have no use after the special order is filled S& A special order has been received by Melrose from Moore Company to purchase 7.000 units of Product C during the upcoming year. If this special order is accepted, the variable selling expense will be reduced by 75%. Melrose will need to purchase a specialized machine to engrave the Moore name on each unit of product C in the special order. The machine will cost S10,500 and will have no use after the special order is filled. 5. Assume that Melrose expects to sell 60.000 units of Product C to regular customers next year. What is the minimum selling price per unit that Melrose would accept for the special order of 7,000 units? 6. Refer to the original data. Suppose Melrose can sell 68,000 units of Product C to regular customers next year. If Moore Company offers to buy the special order units at S95 per unit. Melrose will have to forego some its regular customers to fulfill the special order of 7.000 units. What is the effect of accepting the special order on net operating income? T. 6. Refer to the original data. Suppose Melrose can sell 68,000 units of Product C to regular customers next year I Moore Company offers to buy the special order units at $95 per unit, Melrose will have to forego some its regular customers to fulfill the special order of 7.000 units. What is the effect of accepting the special order on net operating income? a. $93.500 increase b. S104,000 increase 6. S114.500 increase d. $294.000 increase e. None of the above
please answer 6, I have 5 done ($54.50) but I dont know how to solve the following question 6!
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