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Please answer both Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one
Please answer both
Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: $120 110 105 65 Direct materials Direct labor Manufacturing support Marketing costs Fixed costs: Manufacturing support Marketing costs Total costs 620 Markup (40%) 248 Targeted selling price $868 What is the full cost of the product per unit? O A. $248 OB. $400 OC. $620 OD. $868 2018 165 55 Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials Direct labor $6.00 4.00 3.00 Variable overhead 1.00 Fixed overhead Marketing-fixed 8.00 Marketing/distribution-variable 4.60 Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Zephram Corporation about purchasing 2,300 units at $24.00 each. Current sales would not be affected by the one-time - only special order. What is Zephram's change in operating profits if the one-time - only special order is accepted? OA. $26,680 increase B. $40,480 increase C. $25,300 increase D. $14,720 increaseStep by Step Solution
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