Question
SELLING PRICE 10000 Required: a. What is the full cost of the product per unit if the marketing costs is $3,000? b. What is the
SELLING PRICE 10000
Required:
a. What is the full cost of the product per unit if the marketing costs is $3,000?
b. What is the contribution margin per unit?
c. Which costs are relevant for making the decision regarding this one-time-only special order? Why?
d. For Eagle Manufacturing, what is the minimum acceptable price of this one-time-only special order?
e. For this one-time-only special order, should Eagle Manufacturing consider a price of $5,400 per unit? Why or why not?
For D and E there is another post in this page:
https://www.chegg.com/homework-help/questions-and-answers/d-eagle-manufacturing-minimum-acceptable-price-one-time-special-order-e-one-time-special-o-q45722477
Eagle Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials $1,825 Direct labor 900 Variable manufacturing support 1,300 Fixed manufacturing support 3,000 Total manufacturing costs $7,025.00 Eagle Manufacturing has excess capacityStep by Step Solution
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