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Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their
Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their locale and business model. It manufactures two systems, the Star100 and the Star150, which differ in terms of capabilities. The following information is available:
c-1. Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increase to $30.00 per hour. Variable overhead costs for overtime production are $5 per hour more than for normal production. Complete the table below to determine the total contribution margin Star100 Star150 Total Special Order: Contribution margin per unit Number of units Total contribution margin Regular production Contribution margin per unit Number of units Total contribution margin Total contribution margin for both: Additional direct-labor costs Additional variable overhead Total contribution margin for both (with additional costs): c-2. How much will the profits change in this situationStep by Step Solution
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