Personali Company manufactures and sells 60,000 widgets per year. Personali has a production capacity of 80,000 widgets.
Fantastic news! We've Found the answer you've been seeking!
Question:
Direct Materials............... ................$ 39
Direct labor.................................. .....$ 16
Variable Manufacturing Overhead.....$ 8
Fixed Manufacturing Overhead......$ 4
Sales Commission (Variable Selling)....$ 2
Fixed Selling Costs ........$ 1
Personali typically sells the widget for 150% of the total cost (including costs of sale). A new customer wants to place a one-time order of 8,000 widgets at $ 66.00 each. Commissions would not be applied to the special order. However, Personali will be required to pay a one-time fee of $ 800 for a special license to do business in the client's country.
What is the normal sale price of a widget?
By how much will Personali's Company's income change if it decides to accept the special request? Give me the amount with a negative sign if the income decreased. Enter only the amount if income were to increase. Enter 0 if the income would not change. (Round any amounts per unit in intermediate calculations and final answers to the nearest cent, where necessary
Related Book For
Posted Date: