Benson Company manufactures a personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 37,000 units a year but is currently producing and selling only 13,000 units a year. The computer's normal selling price is $1,620 per unit with no volume discounts. The unit-level costs of the computer's production are $570 for direct materials, $200 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Benson during the year are expected to be $2,270,000 and $817,000, respectively. Assume that Benson receives a special order to produce and sell 3,080 computers at $1,300 each. Required Calculate the contribution to profit from the special order. Should Benson accept or reject the special order? Contribution to profit Should Benson accept or reject the special order?

The Mighty Music Company produces and sells a desktop speaker for $200. The company has the capacity to produce 60,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit-level costs Product-level costs Facility-level costs The company has received a special order for 11,000 speakers. If this order is accepted, the company will have to spend $20,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? Multiple Choice O O $96.82 $146.82 $104.32 $95 $25 $15 $107.32

Futura Company purchases the 69,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.40 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $11.60 as shown below:     Per Unit Total Direct materials $ 5.00         Direct labor   2.20         Supervision   1.90   $ 131,100   Depreciation   1.30   $ 89,700   Variable manufacturing overhead   0.70         Rent   0.50   $ 34,500   Total product cost $ 11.60             If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $131,100) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space…

Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.90 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 6.00 3.00 1.50 1.30 0.70 0.40 $12.90 Total $ 106,500 $ 92,300 $ 28,400 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $106,500) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $84,000 per period.…