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Task 3 Q. 1 Solve the question in Excel. Axle and Wheel Manufacturing is approached by a European customer to fulfil a one-time-only special order
Task 3 Q. 1 Solve the question in Excel. Axle and Wheel Manufacturing is approached by a European customer to fulfil 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: $33 15 Direct materials Direct labour Variable manufacturing support Fixed manufacturing support Total manufacturing costs Mark-up (50%) Targeted selling price 24 52 124 $186 Axle and Wheel Manufacturing has excess capacity. Required: a. What is the full cost of the product per unit? 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 Axle and Wheel Manufacturing, what is the minimum acceptable price of this one-time-only special order? e. For this one-time-only special order, should Axle and Wheel Manufacturing consider a price of $100 per unit? Why or why not
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