Question: Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate special order decisions Baird Company manufactures a personal computer designed for use in schools
Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate special order decisions Baird Company manufactures a personal computer designed for use in schools and markets it under its own label. Balrd has the capacity to produce 36,000 units a year but is currently producing and selling only 18,000 units a year. The computer's normal selling price is $1,750 per unit with no volume discounts. The unit-level costs of the computer's production are $490 for direct materials, $230 for direct labor, and $120 for indirect unit-level manufacturing costs. The total product and facility level costs incurred by Baird during the year are expected to be $2.130,000 and $819,000, respectively. Assume that Balrd receives a special order to produce and sell 3,040 computers at $1.260 each Required Calculate the contribution to profit from the special order. Should Baird accept or reject the special order? Contribution to profit Sh aird accept of reject the special order
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