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Problem #1 Billy's Ball Caps makes ball caps with custom logos. This year's data is: Per cap: Sales $18 Direct materials $ 6 Direct labor
Problem #1 Billy's Ball Caps makes ball caps with custom logos. This year's data is: Per cap: Sales $18 Direct materials $ 6 Direct labor $ 4 Variable OH 60% of direct labor Fixed overhead $250,000 per year Capacity 200,000 caps per year Expected production 140,000 caps this year Donna's Discount Dugout calls about a special order. They want 40,000 ballcaps and are willing to pay $12 per cap. Additional shipping would cost Billy $4000. Provide detailed calculations to explain the best decision to Billy. Good format and proper labeling are very important
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