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The OPTIONS are $54.50, $75.00, and $76.50. You don't have to show all your work but a partial list of calculations or a formula would
The OPTIONS are $54.50, $75.00, and $76.50. You don't have to show all your work but a partial list of calculations or a formula would be nice.
The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 70.000 units of Product Ceach yea If Melrose produces at capacity, the per unit costs to produce and sell one unit of Product C are as follows: $20 Direct materi Direct labo Variable manufacturing overhead $13 Fixed manufacturing overhea $14 Variable selling expense $8 Fixed selling expense The regular selling price of one unit of Product CIS $100. A speclal order has been receMed by Melrose from Moore Corporation to purchase 7000 units of Product C during the upcoming year. If thls speclal order ls accepted, the variable selling expense will be reduced by 75% Total fixed manufacturing overhead and fixed selling expenses would be unaffected except that Melrose wi need to purchase a specialized machine to engrave the Moore name on each unit of product CIn the speclal order. The machine will cost $10,500 and will have no use after the speclal order ls filled. Assume that dlrect labor ls a varlable cost. Assume that Melrose expects to sell 60000 units of Product Cto regular customers nextyear At what selling price for the 7000 units would Melrose be economically Indifferentbetween accepting and rejecting the speclal order from MooreStep by Step Solution
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