Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Relevant cost special order pricing Kantrosite Companyamaracturer of industrial components. One of a product P110, used as a subcomponent in appliance manufactures produthat the following

image text in transcribed
image text in transcribed
Relevant cost special order pricing Kantrosite Companyamaracturer of industrial components. One of a product P110, used as a subcomponent in appliance manufactures produthat the following information per unit Sprice 51500 Costs Di mana S2000 Drainor 15.00 Varmatuuringowe 12.00 Hedmarutture vechi 000 Shop and tundin 30 Hur and admin 10.00 To calor 350.00 Kantrovit has receved a spolontine order for 1,000 AP110 parts. Assuming Kantrovit has excess capacity at the memum price is ceptable for beginning negotiation on this orders 60 x Kantrovt has 5.000 units of AP 110 in Wory that have some defects. The units cannot be sold througar chames without a picant price reduction What punt core k relevant for setting a mom selling price on these units! 2 X During the next year of AP110 are expected to be 10,000 units. All costs will remain the same ccept the manufacturing verband will increase by 20 percard direct witinerer TRIM 10.00 3000 fixed and Tutor a Kantrosit has received a special one time order for 1,000 AP110 parts. Assuming Kantrowitz has excess capacity, what is the minimum prxce that is acceptable for beginning negotiations on this order? 60 A Kantrow has 5.000 units of AP 10 nentory come detects the units cannot be sold through regular cunnel without a picant price reduction What peront color setting a minimum telling price on these?? During the next year, sales of AP110 are expected to be 10,000 units. Al costs will remain the same except that fedting overhead will increase by 20 percent and detail will increase by 10 percent. The selling Price per unit for next year will be $160. Based on these data, calculate the total contribution marga generated by part 10 $ 1.207,500 x Referring to (ol Kantrovits has received a special, one time order for 1000 AP110 parts. Assume that Kantroveis operating at full capacity, and that the contribution of the Dutput would be displaced by the one time special order. Using the original data compute the minimum acceptable selling price for this order. 162

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

Step: 3

blur-text-image

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

Payroll Accounting 2021

Authors: Bernard J. Bieg, Judith A. Toland

31st Edition

0357358287, 9780357358283

More Books

Students also viewed these Accounting questions

Question

What are the types of homicide, and how are they differentiated?

Answered: 1 week ago

Question

=+b) Is this model appropriate for this series? Explain.

Answered: 1 week ago