Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2: (20 marks total) Global Telecom manufactures high-tech cell phones. Global Telecom has a policy of adding a 30% markup to full costs
Question 2: (20 marks total) Global Telecom manufactures high-tech cell phones. Global Telecom has a policy of adding a 30% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month: Output units 1000 Phones 8,000 Hours 5,000 Hours Machine-hours Direct Manufacturing labour hours Direct material per unit Direct manufacturing labour per hour Variable manufacturing overhead costs Fixed manufacturing overhead costs Product and process design costs Marketing and distribution costs 25 15 175,000 425,000 400,000 475,000 Global Telecom is approached by an overseas customer to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for a one-time setup charge of $15,000. No additional design, marketing, or distribution costs will be incurred. Required: 1) What is the minimum acceptable bid per unit on this one-time-only special order? (12 marks) 2) What is the full product cost? (8 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started