Question
show working formulas in excel in at least two cells. Summer Corp produces high end swimming pool floats. The Floater 5000 sells for $300. Summer
show working formulas in excel in at least two cells.
Summer Corp produces high end swimming pool floats. The Floater 5000 sells for $300. Summer produces and sells 6,000 of them per year. Cost data are as follows:
Variable manufacturing | $120 | per unit |
Variable selling and administrative | $19 | per unit |
Fixed manufacturing | $390,000 | per year |
Fixed selling and administrative | $175,000 | per year |
Pools R Us has asked Summer Corp to produce 50 units at a special price of $240 per unit for a one-time only sale. The sale will not negatively impact the company's regular sales activities and will require the normal variable manufacturing costs and selling and administrative costs.
There is plenty of excess capacity and the deal will not impact fixed costs.
Create a Differential Analysis of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted. Show excel working formula in at least 2 cells.
This assignment is worth 10 points overall, 5 points for proper setup, 2 points for correct final number answer, 1 point for your decision (Accept or Reject the special pricing request), 2 points for working formulas within the cells.
show working formulas in excel in at least two cells.
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