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Use the following information for items 13, 14, 15, 16 and 17 for a special order. ASU Corporation manufactures thermostats for classrooms. The cost
Use the following information for items 13, 14, 15, 16 and 17 for a special order. ASU Corporation manufactures thermostats for classrooms. The cost to make a unit: Variable manufacturing cost (materials, labor, overhead).. $54 per unit Fixed Manufacturing cost ($1,800,000 per year for 100,000 units...... $18 per unit ASU was approached by the School of Business (SOB) with a offer to buy 7,500 thermostats at a price of $60. The regular selling price is $100. ASU has the capacity to produce the 7,500 additional units without affecting the current production of 100,000 units. SOB will require that each unit use its branding resulting in an additional $2 per unit material cost. The SOB order will also require a one-time rental cost of $20,000. Under the "Status Quo" for 100.000 units, what is the contribution Margin? $5.820,000. $5,400,000. $4,630,000. $4,600,000.
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