andle 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 regular customers: Wariable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs Fxed costs: 55 Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (S0%) 320 Targeted selling price $960 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 $320 OB. $640 OC S480 OD. $400
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- 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.Alpha Company is approached by a customer to provide a one-time only special order for a product similar to one offered to its current customers. Alpha company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs Direct materials sh. 40 Direct labor 20 Manufacturing support 35 Marketing costs 15 Fixed costs Manufacturing support 45 Marketing costs 15 Total costs 170 Mark up (50%) 85 Targeted selling price 255 What is the contribution to fixed costs if the one- time- only special order for 1000 is…Coodie 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 apply for sales to regular customers Variable costs Direct materials $140 80 Direct labor Manufacturing support 155 Marketing costs 45 Fixed costs Manufacturing support 175 Markeling costs 55 Total costs 650 Markup (45%) 293 Targeted selling price $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 $293 OB. $420 OC S450 OD. S650 O Time Remaining: 02:33:40 Next ) 2. 3. 4. 5. 6. 7 8. 9. delete W E R. Y
- Beta 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?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: (A) Calculate the selling price if the company adds mark-up of 45% on variable costs.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…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. Shalom Department has ample excess capacity to handle all of Peace Department's needs without any increase in fixed costs and without cutting into outside sales of the part. What is the lowest acceptable transfer price from the standpoint of the selling division? 75 55 400,000 25,000
- Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $69 32 26 20 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 15% return on invested assets of $600,500. $147 > a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. 90,075 $199,200 68,900 b. Determine the product cost per unit for the production of 4,950 cell phones. Round your answer to the nearest whole dollar. -158 X per unit Total Cost c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. -66 X % Markup Selling price d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. per unit per unit per unitA customer has requested a special order of ABC Co's primary product and has offered to pay $30 per unit. While the product would be modified slightly for the special order, the product's normal information is provided below Sales price per unit Direct materials per unit Direct labor per unit $25.50 Total Fixed Costs $6.20 $2 Variable manufacturing overhead per unit $ 4.40 $1,150,000 The customer would like modifications made to each product that would increase the variable costs by $2.20 per unit and that would require an investment of $24,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. How large would the special order have to be in units in order for ABC Co to break even on the special order?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?