FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A company has received a special order from a customer to make 5,000 units of a
customized product. The direct materials cost per unit of the customized product is
$15, the direct labor cost per unit is $5, and the manufacturing
$18, including $6 of variable manufacturing overhead. If the company has sufficient
available manufacturing capacity, what is the minimum price that can be accepted for
the special order?
a. $24 c. $32
b. $26 d. $38
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- Please help me with show all calculation thankuarrow_forwardneed help with this questionarrow_forward6 Helix Company has been approached by a new customer to provide 1,500 units of its regular product at a special price of $7 per unit. The regular selling price of the product is $9 per unit. Helix is operating at 80% of its capacity of 11,500 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.70 per unit shipping cost. There will be no additional administrative expenses because of this order. Calculate the operating income from the order. a. Selling price b. Direct materials cost c. Direct labor cost d. Variable manufacturing overhead e. Fixed manufacturing overhead f. Regular selling expenses g. Additional selling expenses h. Administrative expenses Revenue (cost) per unit $ 7.00 (1.00) (2.00) (1.80) (0.75) (1.30) (0.70) (0.80) Relevant Not Relevant…arrow_forward
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