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Wilson Blossom is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company
Wilson Blossom is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials $40.00 Direct labor 16.00 Manufacturing overhead 17.00 Selling and administrative 14.00 Total unit cost $87.00 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses. Your answer is correct. Calculate variable overhead per unit and variable selling and administrative costs per unit. (Round answers to 2 decimal places, eg. 15.25.) $ 5 Variable overhead per unit $ 7 Variable selling and administrative costs per unit eTextbook and Media Attempts: 1 of 4 used (a2) Your Answer Correct Answer (Used) Pina, Finland's second largest homebuilder, has approached Wilson with an offer to buy 75,000 windows during the coming year. Given the size of the order, Pina has requested a 40% volume discount on Wilson's normal selling price. Calculate the contribution from special order. (If net contribution is negative, enter amount with a negative sign, e.g.-5,285 or parentheses, e.g. (5,285). Round answer to 0 decimal places, e.g. 8,971.) $ $ -310,000 Net contribution from special order Should Wilson grant Pina's request? No Return to the original data. Monk Builders has just signed a contract with the state government to replace the windows in low- income housing units throughout the state. Monk needs 80,000 windows to complete the job and has offered to buy them from Wilson at a price of $110.00 per window. Monk will pick up the windows at Wilson's plant, so Wilson will not incur the $2 per window shipping charge. In addition, Wilson will not need to pay a distributor's commission, since the windows will not be sold through a distributor. Calculate the contribution from special order, contribution lost from regular sales and the net contribution from special order. $ Contribution from special order $ Contribution lost from forgone regular sales $ Net contribution from special order
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