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please slove this question in a text. ( detalis) Questionl (10 Marks)(CLO4). Mckerchie Inc. manufactures industrial components. One of its products, which is used in
please slove this question in a text. ( detalis)
Questionl (10 Marks)(CLO4). Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as G62. Data concerning this product are given below: The above per unit data are based on annual production of 12,000 units of the component. Direct labor can be considered a variable cost. The company has received a special, one-time-only order for 400 units of component G62. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. However, assume that Mckerchie has no excess capacity and this special order would require 50 minutes of the constraining resource, which could be used instead to produce products with a total contribution margin of $6,900. INSTRUCTIONS: 1. What is the minimum price per unit on the special order below which the company should not go? 2. What is the current contribution margin per unit for component G62 based on its selling price of $160 and its annual production of 12,000 units Step by Step Solution
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