Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show me the math behind each amount you calculate. Thank you. On February 1,2020 Swan manufacturing is approched by a customer to fulfill a

image text in transcribed

Please show me the math behind each amount you calculate.

Thank you.

On February 1,2020 Swan manufacturing is approched by a customer to fulfill a one-time only spcial order of 3-D printers like the one sold to regular customers. The following per unit, esitmated annual cost data for production ans sales to regular cutomers is: Direct materials per unit 1,825 Direct labor per unit 900 Variable manufacturing support per unit Variable marketing per unit Fixed manufacturing per unit 3000 Fixed marketing in total 10,000 markup 50% of product cost 50% selling price 1000 300 ? *Swan has excess capacity. The repective product and marketing costs are based on a practical capacity of 1,200 units per year. Current sales are at 1,000 3-D printers. * The special order is for n=100,3-D printers, at a selling price of $4,400 per unit. The printers are to be used by the local fire and police departments in making protective face masks. A unique membership idetification tag will need to be added to the spcial order, increasing direct materials cost per unit to $1,900 and direct labor per unit of $1,400. There will be no variable marketing cost with the special order. 1. In proper format prepare a special-order profit maximization decision report (Please show a comparison between the current business situation and the special order) 2. Write a brief note explanning why would you accept or reject the special order

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

Step: 3

blur-text-image

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

Modern Management Control Systems Text And Cases

Authors: Kenneth A. Merchant

1st Edition

0135541557, 978-0135541555

More Books

Students also viewed these Accounting questions

Question

What aspect of the inventory audit is mandatory?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago