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Supergeeks is a company that assembles computer components to make super computers for resale to their customers. There have put together a standard cost
Supergeeks is a company that assembles computer components to make super computers for resale to their customers. There have put together a standard cost card for a computer as shown below Standard Cost Card for One Super Computer per unit Notes Direct Materials 275 Direct Labour 50 Direct Expenses 75 Prime Cost 400 Variable Overheads 53 Fixed Overheads 378 Based on 230 Computers Total Costs 831 Profit Margin 166 20% Selling Price 998 Super geeks still have spare capacity to assemble and sell more computers An old friend of the directors has approached them and asked to sell to him 75 computers for a special price of 455 per computer. Required What is the total value of the contract that would help us determine whether this special contract should be accepted? In other words, what value would you use to decide whether the contract should be accepted or not. Choose... 30,000.00 (28,219.57) 34,125.00 (150) (200) 150.00 4,125.00 200 (40,688.48) 33,975.00 Should they accept the offer? Yes or No
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