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Problem 3. The Red Banner company manufactures banners for Austin Peay. They expect to operate at 90% of production capacity in September. The total manufacturing
Problem 3. The Red Banner company manufactures banners for Austin Peay. They expect to operate at 90% of production capacity in September. The total manufacturing costs for September for the production of 36,000 banners are estimated below: Total Costs Direct materials 285,000 Direct labor 104,000 Variable plant overhead 31,000 Fixed factory overhead 58,000 Total manufacturing costs 478,000 The company has become aware of a possible special order bidding process to make a one time order of 3,300 banners to be finished by the end of September. If the contract is won, it is anticipated that the additional work will not interfere with their current production or increase selling and administrative costs. What is the lowest sales price that Red can submit as a bid for this contract? A breakeven number. Show your work and label your numbers to receive full credit. Round to a whole number. What if Red's investors require at least a $61,000 profit on each special order. What is the amount per unit that Red should Show your work and label your answers to receive full credit. Round to two places. What is the full production in number of banners that Red can make each month? Round to a whole number and show your work
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