Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 (10 points) Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling 40,000 shelves for $32 each.

image text in transcribed
Question 9 (10 points) Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk: this saves Shelby $1.08 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $25.4 with fixed costs of $350.000. Because the shelves don't require packaging, the unit variable costs for the special order will drop by $1.08 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price PER SHELF that Shelby should accept for this special order? Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Birth Of American Accountancy

Authors: Peter L. McMickle, Paul H. Jensen

1st Edition

0367534681, 9780367534684

More Books

Students also viewed these Accounting questions

Question

Let v = (- 1, 2, 5). Find all scalars k such that || kv || = 4.

Answered: 1 week ago

Question

please try to give correct answer 2 4 3 .

Answered: 1 week ago

Question

Explain the use of the employment interview.

Answered: 1 week ago

Question

Identify environmental factors that affect the selection process.

Answered: 1 week ago