Question: Problem 1 1 . 6 A machine shop in a factory is working to its full capacity and earning a contribution of $ 5 0

Problem

11.6

A machine shop in a factory is working to its full capacity and earning a contribution of $

50

per hour. The management receives a high priority order which it wants to execute immediately. Material will be supplied by the customer and the special order will take a minimum of

10

hours. Wages payable will be

15

per hour and variable overhead will be

150 %

of wages. If the customer is prepared to pay

800

for the order, should the order be accepted.

Problem 11.6 A machine shop in a factory is working to

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