Yoda Company mines and manufactures Kyber crystals designed for use in light sabers. The company markets...

 

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Yoda Company mines and manufactures Kyber crystals designed for use in light sabers. The company markets the crystals under its own label. Yoda has the capacity to mine and produce 44,000 units a year but is currently mining, producing, and selling only 19,000 units a year. The crystal's normal selling price is $1,620 per unit with no volume discounts. The unit-level costs of the crytsal's mining and production are $430 for direct materials, $230 for direct labor, and $190 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Yoda during the year are expected to be $2,200,000 and $818,000, respectively. Assume that Yoda receives a special order to mine, produce, and sell 3,000 crystals at $1,200 each. Required Calculate the contribution to profit from the special order. Should Yoda accept or reject the special order? Contribution to profit Should Yoda accept or reject the special order? Yoda Company mines and manufactures Kyber crystals designed for use in light sabers. The company markets the crystals under its own label. Yoda has the capacity to mine and produce 44,000 units a year but is currently mining, producing, and selling only 19,000 units a year. The crystal's normal selling price is $1,620 per unit with no volume discounts. The unit-level costs of the crytsal's mining and production are $430 for direct materials, $230 for direct labor, and $190 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Yoda during the year are expected to be $2,200,000 and $818,000, respectively. Assume that Yoda receives a special order to mine, produce, and sell 3,000 crystals at $1,200 each. Required Calculate the contribution to profit from the special order. Should Yoda accept or reject the special order? Contribution to profit Should Yoda accept or reject the special order?

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1 The product level costs incurred by Yoda Company means the cost incurred irrespective of amount of ... View the full answer