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Thermal Mugs, Inc., manufactures various types of leak-proof personal drink carriers. Thermal's T6 container, its most insulated carrier, maintains the temperature of the liquid inside

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Thermal Mugs, Inc., manufactures various types of leak-proof personal drink carriers. Thermal's T6 container, its most insulated carrier, maintains the temperature of the liquid inside for 6 hours. Thermal has designed a new lid for the T6 carrier that allows for easier drinking and pouring. The cost to produce the new lid is: Direct materials $3 Direct labor $5 Avoidable fixed overhead per unit $9 Variable fixed overhead per unit 6 Plato Plastics has approached Thermal and offered to produce the 140,000 lids Thermal will require for current production levels of the T6 carrier, at a unit price of $15 each. What are the total relevant costs for Thermal Mugs? Franco, Inc., produces dental office examination chairs. Franco has the capacity to produce 8,000 chairs per year and currently is producing 5,000 . Each chair retails for $15,000, and the costs to produce a single chair consist of direct materials of $3,000, direct labor of $3,000, and variable overhead of $3,000. Fixed overhead costs of $1,200,000 are met by selling the first 3,000 chairs. Franco has received a special order from Ghanem, Inc., to buy 700 . Each chair is sold for $11,000 (selling price of one chair). There are no additional costs needed for this special order. What is the contribution margin for the special order? Thermal Mugs, Inc., manufactures various types of leak-proof personal drink carriers. Thermal's T6 container, its most insulated carrier, maintains the temperature of the liquid inside for 6 hours. Thermal has designed a new lid for the T6 carrier that allows for easier drinking and pouring. The cost to produce the new lid is: Direct materials $3 Direct labor $4 Fixed overhead per unit $7 Variable fixed overhead per unit 6 Plato Plastics has approached Thermal and offered to produce the 130,000 lids Thermal will require for current production levels of the T6 carrier, at a unit price of $16 each. What are the total relevant costs to buy from Plato

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