TB MC Qu. 11-32 (Algo) Total relevant cost per unit: Stringing Music Company The following cost information pertained to the Violin Division of Stringing Music Company and was based on monthly demand and sales of 100 units: Variable production costs: Direct materials Direct labor Variable factory overhead Fixed production costs: Depreciation (equipment) Factory rent Other Total production cost Variable selling & administrative costs Fixed selling & administrative costs Per-Unit Costs $160 190 100 60 88 20 Saved $618 $ 32 per unit $44 per unit Assume that the Violin Division was evaluating whether it would accept a special sales order for 30 violins at $430 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is: Help Save & B

Muskoka Tools Depot is selling snow blowers for $720.00 each. The same model blowers are being offered by Dixie Appliances for $504.00 each. What rate of discount should Muskoka Tools Depot offer to match the lower price?   The variable costs to manufacture a digital appliance are $260 per appliance and the selling price is $850 per appliance. The fixed costs are $46,520 per month. a. Calculate the contribution margin per appliance. Round to the nearest cent b. Calculate the number of appliances that need to be sold per month to break even.

Mobile Homes has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 124 and for $95 in order quantities above 125 units. The order cost is $5, and the annual holding cost is 10% of unit value. a) In what quantities should the item be purchased with an all-units quantity discount? b) If an incremental quantity discount schedule is in effect, how many refrigerators should Gursoy order each time an order is placed? c) Compare the cost savings for parts a) and b) with respect to the original case without discount. Which schedule is better?

A company operates in a competitive marketplace. They look to the market to determine their selling price.  It looks like the market will bear a price of $438.  The company has a goal of earning 10% return on sales on each unit.  What would their target cost be?  Round your answer to the nearest whole dollar.

Global Lawn, a manufacturer of lawn mowers, predicts that it will purchase 228,000 spark plugs next year. Global Lawn estimates that 19,000 spark plugs will be required each month. A supplier quotes a price of $11.00 per spark plug. The supplier also offers a special discount option: If all 228,000 spark plugs are purchased at the start of the year, a discount of 4% off the $11.00 price will be given. Global Lawn can invest its cash at 10% per year. It costs Global Lawn $260 to place each purchase order. Read the requirements. Requireme Let's begin t Differer Requirements 1. What is the opportunity cost of interest forgone from purchasing all 228,000 units at the start of the year instead of in 12 monthly purchases of 19,000 units per order? C---- 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Global Lawn purchase 228,000 units at the start of the year or 19,000 units each month? Show your calculations. 4. What other factors should Global Lawn…