Question
the company WEDEOR manufacturing currently produces 100 four-wheelers per month, of model A. They have the capacity to produce 1000 units. the following per unit
the company WEDEOR manufacturing currently produces 100 four-wheelers per month, of model A. They have the capacity to produce 1000 units. the following per unit data apply for sales to regular customer:
unit cost per 100 units direct materials 300 direct manufacturing labor 160 variable manufacturing overhead 180 fixed manufacturing overhead 160 total manufacturing cost 800 markup 25% 200 estimated selling price 1000
1. should they accept or refuse the order if they are offered 520 per four-wheeler? discuss the factors that would cause them to change their decision? one time special order is 120 four-wheelers, type b, for a newly established farming area municipality in cyprus, when variable manufacturing overhead is caused by the special machine which is not needed for the type b four wheelers production, when all other costs are equal with model A.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started