Question: Raw materials Direct labor Variable overhead Fixed overhead $ 6.10 per unit 6.10 per unit 8.10 per unit $363,000 per year An Italian firm has

Raw materials Direct labor Variable overhead Fixed overhead $ 6.10 per unit 6.10 per unit 8.10 per unit $363,000 per year An Italian

Raw materials Direct labor Variable overhead Fixed overhead $ 6.10 per unit 6.10 per unit 8.10 per unit $363,000 per year An Italian firm has offered to purchase 20,100 of the components at a price of $24.5 per unit, FOB IMI's plant. The normal selling price is $32.3 per component. This special order will not affect any of IMI's "normal" business. Management calculated that the cost per component is $23.3, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the fixed overhead per unit? (Round your answer to 2 decimal places.) Fixed overhead per unit Req A Req B and C > Complete this question by entering your answers in the tabs below. Req A Req B and C b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? b. The cost calculation is appropriate C. The offer from the Italian firm should be Req A Req B and c Raw materials Direct labor Variable overhead Fixed overhead $ 6.10 per unit 6.10 per unit 8.10 per unit $363,000 per year An Italian firm has offered to purchase 20,100 of the components at a price of $24.5 per unit, FOB IMI's plant. The normal selling price is $32.3 per component. This special order will not affect any of IMI's "normal" business. Management calculated that the cost per component is $23.3, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the fixed overhead per unit? (Round your answer to 2 decimal places.) Fixed overhead per unit Req A Req B and C > Complete this question by entering your answers in the tabs below. Req A Req B and C b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? b. The cost calculation is appropriate C. The offer from the Italian firm should be Req A Req B and c

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