de Manulacturers Inc. is approached by a potential customer to fulfill a one - time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apoly for sales regular customers Variable costs Direct materials $140 Dredt labor 80 Manufacturing support 155 Marketing costs 45 Fired costs Manufacturing support 175 Marketing costs Total costs 55 Markup (45%) 650 Targeted selling price 293 $943 For Crandie Manufacturers Inc, what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA S293 OB $420 OC S450 OD. S850
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- V&S Mechanical sells and services plumbing, heating, and air conditioning systems. V&S's cost accounting system tracks two cost categories: direct labor and direct materials V&S uses a time-and-materials pricing system, with direct labor marked up 100% and direct materials marked up 50% to recover indirect costs of support staff, support materials, and shared equipment and tools and to earn a profit (Click the icon to view the cost information) Read the requirements Requirement 1. If Dryden presents Lowry with the replace or repair options, what price would he quote for each? Complete the table below to determine the price Dryden would quote for each option Labor Materials Total Price Repair option Replace option Requirements 1. if Dryden presents Lowry with the replace or repair options, what price would he quote for each? 2. If the two options were equally effective for the 3 years that Lowry intends to live in the home, which option would she choose? 3. if Dryden's objective is to…randle Manufacturers Inc. is approached by a potential customer to fulfill a one-time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sale o regular customers: Variable costs: Direct materials $140 Direct labor 100 Manufacturing support Marketing costs 105 55 Fixed costs: Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (50%) 320 Targeted selling price $960 For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA $320 OB. $640 OC $480 OD. S400 Calculator Next MacBook Pro esc %23 & * 2. 3 4. 6. 8 delete R Y F G H KBeta is approached by a customer to fulfill a one-time-only special order. Beta has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 60 Manufacturing support 105 Marketing costs 45 Fixed costs: Manufacturing support 135 Marketing costs 45 Total costs 510 Markup (50%) 255 Targeted selling price $765 15) What is the full cost of the product per unit? 16) What is the contribution margin per unit? 17) For Beta, at what price per unit of this special order would operating income be the same whether or not it accepted the special order? 18) What is the change in operating income for Beta if the one-time-only special order for 1,000 units is accepted for $540 a unit?
- Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answerb. Kantrovitz has 8,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answerc. During the next year,…Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? Answer: $50 d. Referring to (a), Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assume that Kantrovitz is operating at full capacity, and that the contribution of the output would be displaced by the one-time special order. Using the original data, compute the minimum…Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,000 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answer b. Kantrovitz has 5,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answer c. During the next…
- Listed below are a company’s monthly unit costs to manufacture and market a particular product.Unit Costs Variable Cost Fixed CostsDirect materials P2.00 Direct labor 2.40 Indirect Manufacturing 1.60 P1.00Marketing 2.50 1.50The company must decide to continue making the product or buy it from an outside supplier. The supplier has offered to make the product at the same level of quality that the company can make it. Fixed marketing costs would be unaffected, but variable marketing costs would be reduced by 30% if the company were to accept the proposal. What is the maximum amount per unit that the company can pay the supplier without decreasing its operating income? • P5.25 • P7.75 • P6.75 • P8.50 • None of the aboveROXY Tires the manufacturer and exported company of tires. The company uses an activity based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system. Activity Cost pool Activity Measure Annual Activity Supporting Direct Labor Direct labor Hour $28 per DLH Order Processing Order $285 per Order Custom design processing Custom design $185 per customer design Customer service customer $378 per customer Management would like an analysis of the profitability of a particular customer, Roxy Tires, which has ordered the following products over the last 12 months: Items…………………………….standard model……………….customer Design Number of Tires…………………20………………………………5 Number of orders……………….1……………………………….5 Number of customer designs……0………………………………5 Direct labor hour per Tires 26.5…………………………….28 Selling price per…Apple offers device service and repair through its AppleCare program, Assumed data follow. Direct labor rate Non-baterials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) Required: 1. Compute time charge per hour of direct labor (in $). 2. Compute materials markup per dollar of direct material cost (in %). 3. Use time and materials pricing to compute the price for a local college. Apple estimates the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost. 1. Time charge per hour of direct labor 2. Materials markup 3. Time and materials price $40 per direct labor hour $10 per direct labor hour 4 of direct materials cost 40% per hour %
- Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions. Format of percentages: 88% Words must be in capital letters. What is the transfer price range?PEACE SHALOM Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 75 55 400,000 25,000 What department will set the lower limit? What department will set the higher limit?Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - factory R27 000 Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (c) Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.SEE MORE QUESTIONS