Question: 1 50 points Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense The normal
The rormal selling price is $2000 per unit The company's capacisy is 104 . 400 units per year, An order has been recelved from a mad order house for 1,300 units at a special price:of $1700 par unit. This otder would not affect regular sales or the cempany's total fixed cosis Required: 1. Wiat is the firancial advantage (disadvantage) af arcegeing the soecial order? 2. As a separate matter from the special order, assume the companys iventory iricludes 1.000 units of this peoduct that were produced last yegr and that are inferiar to the curfent model. The units must tse sold theough regular chinnels at reduced prices The compary does not empect the selling of therse inferion unts la harve amy affect on the sales of atw cuarrent macket What uni cost is relevant for establishing at minimain selling ptice far the inferiod units? Complete this question by enteritg your amswers in the tabs below. As a sepas ate matiey from the special eader, assumet the company's uvwentory inchudes 1,000 units of this aroduct that were produced last year and that are interion to the current model The units must be sold through regular channels at reduced prices: The campany does not expect the seting of these inferior uniss to have any alfoct on the sales of ins current modet What unk cost is relevant for establishing a minimum selling price for the inferior units? (Round rour answer to? decinal plactsi)
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