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RAL SCREEN PRINTER VE Question 2 Axia Inc, manufactures two electronic products, widgets and gadgets, and has a capacity of 1,000 machine hours. Prices and costs for each product are as follows: Widget Gadget Selling price per unit $250 $330 Variable costs per unit Direct materials 30 35 Other direct costs 10 12 Manufacturing overhead costs 30 44 Variable manufacturing overhead costs are applied at a rate of $40 per machine hour. Bromont Industries, a potential client, has offered $250 per unit to Axila for 250 special units. These 250 units would incur the following production costs and time: Direct materials $8,000 Other direct costs $3,000 Machine hours 225 Assume that Axia has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Bromont were accepted Total contribution margin PULL BGN PRINTER VERON BAD Assume that Axia is currently operating at full capacity Calculate the contribution margin per unit and per machine hour (Hound answers to decimal places, e.g. 125.) Widget Gadget New Order OM per unit CM per machine hour $ Determine whether a should produce the units for the special order instead of widget or gadget units. Asla produce the units for the special order instead of widget or gadget unita Assume that Adin is actually operating at 95% of toll capacity, Calculate what the opportunity cost would be if Bromont's special order were accepted. Opportunity cost $ Assume that Axa is actually operating at 95% of all capacity, and additional machines can be rented at a cost of $35,000 to produce Bromant's special order. If the special order is accepted, calculate its effect on Axia's profit Net profit from doing the special order $ RAL SCREEN PRINTER VE Question 2 Axia Inc, manufactures two electronic products, widgets and gadgets, and has a capacity of 1,000 machine hours. Prices and costs for each product are as follows: Widget Gadget Selling price per unit $250 $330 Variable costs per unit Direct materials 30 35 Other direct costs 10 12 Manufacturing overhead costs 30 44 Variable manufacturing overhead costs are applied at a rate of $40 per machine hour. Bromont Industries, a potential client, has offered $250 per unit to Axila for 250 special units. These 250 units would incur the following production costs and time: Direct materials $8,000 Other direct costs $3,000 Machine hours 225 Assume that Axia has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Bromont were accepted Total contribution margin PULL BGN PRINTER VERON BAD Assume that Axia is currently operating at full capacity Calculate the contribution margin per unit and per machine hour (Hound answers to decimal places, e.g. 125.) Widget Gadget New Order OM per unit CM per machine hour $ Determine whether a should produce the units for the special order instead of widget or gadget units. Asla produce the units for the special order instead of widget or gadget unita Assume that Adin is actually operating at 95% of toll capacity, Calculate what the opportunity cost would be if Bromont's special order were accepted. Opportunity cost $ Assume that Axa is actually operating at 95% of all capacity, and additional machines can be rented at a cost of $35,000 to produce Bromant's special order. If the special order is accepted, calculate its effect on Axia's profit Net profit from doing the special order $