QUESTION 3 Company X is asked to fulfill a one-time special order for product A. Assume...
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QUESTION 3 Company X is asked to fulfill a one-time special order for product A. Assume it has the capacity to produce the extra units such that accepting the special order would not affect the company's regular business. Product A unit information for the regular business detailed below: Sales price $10,500 Direct Materials $2,250 Direct Labor $824 Variable Overhead $1,300 Fixed Overhead $3,000 Calculate the minimum acceptable price for this one-time special order = $ 3,000) (use integer only: 3000 not QUESTION 2 Rubium Micro Devices currently manufactures 5,000 subassemblies for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $ 45.00 35.00 33.00 30.00 $143.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $85,000 of fixed overhead if it accepts the proposal, but continue to incur the remaining $65,000. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? a. Buy; savings = $85,000 b. Buy; savings = $50,000 c. Make; savings = $25,000 d. Make; savings = $120,000 QUESTION 3 Company X is asked to fulfill a one-time special order for product A. Assume it has the capacity to produce the extra units such that accepting the special order would not affect the company's regular business. Product A unit information for the regular business detailed below: Sales price $10,500 Direct Materials $2,250 Direct Labor $824 Variable Overhead $1,300 Fixed Overhead $3,000 Calculate the minimum acceptable price for this one-time special order = $ 3,000) (use integer only: 3000 not QUESTION 2 Rubium Micro Devices currently manufactures 5,000 subassemblies for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $ 45.00 35.00 33.00 30.00 $143.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $85,000 of fixed overhead if it accepts the proposal, but continue to incur the remaining $65,000. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? a. Buy; savings = $85,000 b. Buy; savings = $50,000 c. Make; savings = $25,000 d. Make; savings = $120,000
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