Mugshot Monday, Inc (MMI) sells ceramic mugs for $20. Their maximum capacity is 75,000 mugs per...

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Mugshot Monday, Inc (MMI) sells ceramic mugs for $20. Their maximum capacity is 75,000 mugs per period. Use the information below to determine whether MMI should accept a new order at a lower sales price. Assume taking this order will not impact their existing customer base. Use whole dollars only. Do not use the dollar ($) sign. MMI Sales and Cost Information for the Current Period Per Unit Current Period Information Sales Direct Materials Direct Labor Variable Overhead ($0.25 per DL$) Fixed Overhead ($0.50 per DLS)- allocated Total Product Cost Variable selling expense (5% of sales dollars) Fixed selling expense (allocated based on units sold) 20 1.50 8.00 2.00 5.60 19.10 1.00 .50 Total 1,125,000 84,375 450,000 225,000 315,000 1.074,375 56,250 28,125 0 C C A new customer wishes to purchase 15,000 mugs for $15/unit. Calculate the Contribution Margin on this order. Mugshot Monday, Inc (MMI) sells ceramic mugs for $20. Their maximum capacity is 75,000 mugs per period. Use the information below to determine whether MMI should accept a new order at a lower sales price. Assume taking this order will not impact their existing customer base. Use whole dollars only. Do not use the dollar ($) sign. MMI Sales and Cost Information for the Current Period Per Unit Current Period Information Sales Direct Materials Direct Labor Variable Overhead ($0.25 per DL$) Fixed Overhead ($0.50 per DLS)- allocated Total Product Cost Variable selling expense (5% of sales dollars) Fixed selling expense (allocated based on units sold) 20 1.50 8.00 2.00 5.60 19.10 1.00 .50 Total 1,125,000 84,375 450,000 225,000 315,000 1.074,375 56,250 28,125 0 C C A new customer wishes to purchase 15,000 mugs for $15/unit. Calculate the Contribution Margin on this order.

Answer rating: 100% (QA)

To calculate the contribution margin on the new order we need to determine the total revenue and the ... View the full answer