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Wilson Pharoah 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 Pharoah 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: 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. Sheffield, 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, Sheffield has requested a 40% volume discount on Wilson's normal selling price. The contribution lost from regular sales 25,000 units. 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.) Net contribution from special order $ Should Wilson grant Sheffield 's request? If Wilson decides to accept Monk's offer, it will need to find an additional 30,000 windows to meet both the special order and normal sales. Shamrock Panes has offered to provide them to Wilson at a price of $130.00 per window. Shamrock Panes will deliver the windows to Wilson, and Wilson would then distribute them to its customers. Calculate total contribution from outsourcing. Total contribution from outsourcing $
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