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Wellman Corporation's Cupertino, California, plant manufactures chips used in personal computers. lts practical capacity is 2,500 chips per week, and fixed costs are $67,000 per

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Wellman Corporation's Cupertino, California, plant manufactures chips used in personal computers. lts practical capacity is 2,500 chips per week, and fixed costs are $67,000 per week. The selling price is $560 per chip. Production this quarter is 2,300 chips per week. At this level of production, variable costs are $1,035,000 per week. Requirements (a) What will the plant's profit per week be if it operates at practical capacity? (b) Suppose that a new customer offers $520 per chip for an order of 100 chips per week for delivery beginning this quarter. If this order is accepted, production will increase from 2,300 chips at present to 2,400 chips per week. What is the estimated change in the company's prot if it accepts the order? (c) Suppose that the new customer in part b offered $520 per chip for an order of 300 chips per week and that Wellman cannot schedule overtime production. Consequently, it would have to give up some of its current sales to ll the new order for 300 chips per week. What is the estimated change in Wellman's profit if it accepts this order for 300 chips per week? Requirement (a) What will the plant's profit per week be if it operates at practical capacity? Select the items that are relevant, then calculate the prot at practical capacity. (Only complete the necessary answer boxes. Use parentheses or a minus sign for a net loss.) :|: S: :l: :l; Prot at practical capacity Requirement (b) Suppose that a new customer offers $520 per chip for an order of 100 chips per week for delivery beginning this quarter. If this order is accepted, production will increase from 2,300 chips at present to 2,400 chips per week. What is the estimated change in the company's prot if it accepts the order? Requirement (a) What will the plant's profit per week be if it operates at practical capacity? Select the items that are relevant, then calculate the profit at practical capacity. (Only complete the necessary answer boxes. Use parentheses or a minus sign for a net loss.) Total incremental fixed costs Total incremental revenue offers $520 per chip for an order of 100 er. If this order is accepted, production will Total incremental variable costs nips per week. What is the estimated order? Total fixed costs accepted, then calculate the effect on profit. se parentheses or a minus sign for a net Total opportunity cost 1000 Total revenue 000 Total variable costsRequirement (b) Suppose that a new customer offers $520 per chip for an order of 100 chips per week for delivery beginning this quarter. If this order is accepted, production will increase from 2,300| chips at present to 2,400 chips per week. What is the estimated change in the company's prot if it accepts the order? Select the items that are relevant if the order is accepted, then calculate the effect on profit. (Only complete the necessary answer boxes. Use parentheses or a minus sign for a net decrease in profit.) Total incremental revenue 52000 Total incremental variable costs 23000 Requirement (c) Suppose that the new customer in part b offered $520 per chip for an order of 300 chips per week and that Wellman cannot schedule overtime production. Consequently, it would have to give up some of its current sales to ll the new order for 300 chips per week. What is the estimated change in Wellman's profit if it accepts this order for 300 chips per week? Select the items that are relevant if the order is accepted, then calculate the effect on profit. (Only complete the necessary answer boxes. Use parentheses or a minus sign for a net decrease in profit.) Total incremental revenue :| Total incremental variable costs :| Total _pportunity cost :I

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