Question: 10 From the information given below answer the following: Qu 1. Calculate and assess whether Canada Lid should accept the order (4) t of 2.

10 From the information given below answer the following: Qu 1. Calculate and assess whether Canada Lid should accept the order (4) t of 2. If Canada accepts the order what will the difference in profit/(loss) be (2) 3. What is the minimum acceptable price of this one-time-only special order (2)? Canada Ltd is approached by one of its customers to fulfill a large one-time-only special order for 500 units, similar to one offered to regular customers. The following per unit information is available for the product: Direct materials $50.00 Direct labour 62.50 Variable manufacturing cost 30.00 Fixed manufacturing cost 37.50 Total manufacturing costs 180.00 Markup (60%) 108.00 Targeted selling price $288.00 Canada Lid has excess capacity. The customer has specific requirements for the units which will increase direct material costs by $15 per unit. The customer offers to pay $165.00 for the unit. Paragraph B E
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
