Special order pricing Frances's Flonal Shop $($FFS$)$ produces and sells a wide range of floral amangementx. Designers, who are paid $$30$ per heur, produce the arrangements with the help

period. Fixed costs at FFS amount to $$2,000$ per period. Fixed costs are allocaied in customers at

Fixed costs at $FHS$ amount to $$2,000$ per period. Fixed costs are allocated to customers at a male of $$10$ per designer hour.

mant hours.

Required

$($a$)$ What is the minimum price that FFS should charge for this order!

$($b$)$ Suppose now that FFS has already committed to using $190$ designer hours this month. If

variable creds of $$16,$ and require $15$ designer minutes, the coed of which is included in $$16$ variable cost. What is the minimum price that FFS should charge for this oeder?

Designers: $$\frac{30}{h}r,$ Assistants: $$18hr$

FC: $$2000$ reeriod

$200$hrs per period, Unlinited hes avail

FC per customer $=$$$\frac{10}{?}$ designer $w$

only $20$left.

Wedding orcer:

$$$$$1200$ Direct Materials

$14$ designes $LH$

$6$ assistant $LH$

a$)$ Price of empioyees:

$14$ hrs $$$$\frac{30}{h}r=$$$420$ derigner $CH$

$6hrs$$$\frac{18}{h}r=$$$108$ avissiant $CH$

$FC=$$$1014hn=$$$140FC$ for designer $ws$

Direct Materials $=\frac{\text{\$}1200,+}{\text{\$}1868\text{f}\text{o}\text{r}\text{t}\text{h}\text{i}\text{s}\text{j}\text{o}\text{b}}$

WHY IS THE VARIABLE FIXED COST OF $10/$DESIGNER HOUR NOT INCLUDED IN THE COST OF THE JOB