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Question 21 O points Save As Corold Manufacturers Inc. is approached by a European customer to fulfill a one-time only special order for a product
Question 21 O points Save As Corold Manufacturers Inc. is approached by a European customer to fulfill a one-time only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Varico Direct matemala $130 Direct labor 80 Manufacturing support 135 Marketing coute 95 Fudete Manufacturing support Marketing coste 85 Total coste Markup (4) 306 Tarted selling price What is the change in operating profits if the one time only special order for 1000 units is accepted for $540 a unit by Coroid? $100,000 increase in operating profits $99,320 increase in operating profits 599,320 decrease in operating profits $100,000 decrease in operating profits Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price $400 $590 $1220 Unit costs Variable manufacturing (220) (280) (720) Fixed manufacturing (50) (140) (290) Fixed selling and administrative (60) (25 (140) Unit profit $70 $145 $70 Demand in units Machine-hours per unit 170 30 140 40 170 170 Oo oo The maximum machine-hours available are 6300 per week. How many of each product should be produced per month using the short-run profit maximizing strategy? 23 40 0 170 170 0 0 140 7 170 30 40
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