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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
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 orderStep by Step Solution
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