Question: Remaining Time: 1 heur. 59 minutes 51 seconds Question completion Status Question 1 7 points The Zubair manufacturing company manufactures gycles of different models. Its

 Remaining Time: 1 heur. 59 minutes 51 seconds Question completion Status

Remaining Time: 1 heur. 59 minutes 51 seconds Question completion Status Question 1 7 points The Zubair manufacturing company manufactures gycles of different models. Its manufacturing plant has the capacity to produce 5.000 cycles each month. Current production and sales 4500 cycles per month. The company normally charges 5250 per cycle. Cost information for the current activity level is as follows: Variable costs that vary with number of units produced: Direct materials $200.000 Direct manufacturing labor 5300.000 Variable costs for setup, materials handing quality control and so on) that vary with number of batches, 100 batches 5700 per batch $ 70.000 Fored manufacturing costs $ 270,000 Zur manufacturing company has just received a special one time only order for soo cycles at $170 per cycle. Accepting the special order would not affect the company's regular business. The special order requires Zubair manufacturing company to make the cycles in 20 batches of 25 cycles in each batch. Required: A] What are the total costs currently incurred to manufacture 4.500 cycles? marks) B. Should Zubair manufacturing company accept this special order? Show your calculations (3 marks) Which TWO non-quantitative factors should be considered by Zubair manufacturing company in the above situation of decision-making? (1 marko For the toolbar, press ALT+F10 (PC) or ALTOFN+F10(Mac), Activate Windows BIVS Paragraph Arial 14px LIXO Qotto ivatew . X X, 11 TT 99 BE EBS OB CEO v A

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!