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Question 2 0.5 pts Mugshot Monday, Inc (MMI) sells ceramic mugs for $20. Their maximum capacity is 75,000 mugs per period. Use the information below
Question 2 0.5 pts Mugshot Monday, Inc (MMI) sells ceramic mugs for $20. Their maximum capacity is 75,000 mugs per period. Use the information below to determine whether MMI should accept a new order at a lower sales price. Assume taking this order will not impact their existing customer base. Use whole dollars only. Do not use the dollar ($) sign. MMI Sales and Cost Information for the Current Period Current Period Information Per Unit Total Sales 20 1,125,000 Direct Materials 1.50 84,375 Direct Labor 8.00 450,000 Variable Overhead ($0.50 per 4.00 225,000 DL$l Fixed Overhead ($0.50 per 5.60 315,000 DL$) - allocated Total Product Cost 19.10 1.074,375 V ' bl |l 5% f aria e se Ing expense ( o 1.00 56,250 sales dollars) F' d ' Ixe selling. expense (allocated .50 28,125 based on units sold) A new customer wishes to purchase 10,000 mugs for $12/unit. Calculate the Contribution Margin on this order. Calculate the CM on the new order New Order Dollar Value Sales Direct Materials A new customer wishes to purchase 10,000 mugs for $12/unit. Calculate the Contribution Margin on this order. Calculate the CM on the new order New Order DollarValue Sales Direct Materials Direct Labor Variable Overhead Variable Selling Total Variable Costs Contribution Margin Would you recommend taking this order? (type yes or no) What is the lowest price we can sell each mug for and still make a prot? Round your answer to two decimal places. Given our capacity, what is the most number of additional mugs we can produce/sell
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