Question: I did question 1 and 2 and need help with question 3 and 4 please. Each tote sells for $5.25. Based on annual sales forecast

I did question 1 and 2 and need help with question 3 and 4 please.
Each tote sells for $5.25. Based on annual sales forecast (# totes) 600,000
TOTES case study-Appleton Division LAB 5 SPECIAL ORDER Historically, November is a low demand month for the ToTEs. product. Consequently, the company is seeking ways to keep the production line running closer to full capacity during the month One of ToTEs.'s top customers has asked them to produce a special tote for December. The customer is willing to pay extra for the tote. The customer wants to or 0.000 notes and will pay all freigh costs The customer wants red, glittery fabric and an additional snowflake patch attached to the tote. The fabric will cost an additional $0.40per tote, the snowflake patch wholesales at si,000 per 10.000 patches, and sewing costs will increase by 80.13per tote. The company has the capacity to produce these 10,000 additional totes in November and no additional equipment is required. Complete Exhibit 5-A to answer the following questions: 1) Why don't you need to take fixed costs into account for this special order? Fived costs are not to de cons dered sexed cot do change even wfun the ins ease mot and t in the until they are (utd Change Sor the capacity, and that why we dont consider f fed coyt. 2) What is the minimal amount T.OT.Es, should charge the customer for each special tote (round to the penny? Why? Additional cost $0.40 0.10 Rutches cost 10.15 Sewing Mutnium amount should chango
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
