The Wild Boar Corporation is working at full production capacity producing 12,000 units of a unique...

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The Wild Boar Corporation is working at full production capacity producing 12,000 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Wild Boar to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Wild Boar $36 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to Wild Boar of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) The opportunity cost is $ 72,000 Requirement 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Wild Boar so that Wild Boar may accept the Apex offer. That is, if Wild Boar accepts the Chesapeake offer, Wild Boar would manufacture 9,000 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Wild Boar $33 per unit to manufacture Everlast. On the basis of financial considerations alone, should Wild Boar accept the Apex offer? Show your calculations. Wild Boar is considering manufacturing 9,000 units of Everlast and 3,000 units of Stronglast and purchasing 3,000 units of Everlast from Chesapeake. Chesapeake would charge Wild Boar $33 per unit to manufacture Everlast. Begin by completing the following table for manufactured Stronglast units and purchased Everlast units. Selling price per unit Contribution margin per unit Contribution margin from selling 3,000 units Manufacture Stronglast Purchase Everlast Total Data Table Direct materials Direct manufacturing labor Manufacturing overhead Total manufacturing cost 6 4 10 $ 20 Manufacturing overhead cost per unit is based on variable cost per unit of $4 and fixed costs of $72,000 (at full capacity of 12,000 units). Marketing cost per unit, all variable, is $2, and the selling price is $40. Requirements 1. What is the opportunity cost to Wild Boar of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Wild Boar so that Wild Boar may accept the Apex offer. That is, if Wild Boar accepts the Chesapeake offer, Wild Boar would manufacture 9,000 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Wild Boar $33 per unit to manufacture Everlast. On the basis of financial considerations alone, should Wild Boar accept the Chesapeake offer? Show your calculations. 3. Suppose Wild Boar had been working at less than full capacity, producing 9,000 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Wild Boar should accept for Stronglast under these conditions. (Ignore the previous $36 selling price.) The Wild Boar Corporation is working at full production capacity producing 12,000 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Wild Boar to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Wild Boar $36 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to Wild Boar of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) The opportunity cost is $ 72,000 Requirement 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Wild Boar so that Wild Boar may accept the Apex offer. That is, if Wild Boar accepts the Chesapeake offer, Wild Boar would manufacture 9,000 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Wild Boar $33 per unit to manufacture Everlast. On the basis of financial considerations alone, should Wild Boar accept the Apex offer? Show your calculations. Wild Boar is considering manufacturing 9,000 units of Everlast and 3,000 units of Stronglast and purchasing 3,000 units of Everlast from Chesapeake. Chesapeake would charge Wild Boar $33 per unit to manufacture Everlast. Begin by completing the following table for manufactured Stronglast units and purchased Everlast units. Selling price per unit Contribution margin per unit Contribution margin from selling 3,000 units Manufacture Stronglast Purchase Everlast Total Data Table Direct materials Direct manufacturing labor Manufacturing overhead Total manufacturing cost 6 4 10 $ 20 Manufacturing overhead cost per unit is based on variable cost per unit of $4 and fixed costs of $72,000 (at full capacity of 12,000 units). Marketing cost per unit, all variable, is $2, and the selling price is $40. Requirements 1. What is the opportunity cost to Wild Boar of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Wild Boar so that Wild Boar may accept the Apex offer. That is, if Wild Boar accepts the Chesapeake offer, Wild Boar would manufacture 9,000 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Wild Boar $33 per unit to manufacture Everlast. On the basis of financial considerations alone, should Wild Boar accept the Chesapeake offer? Show your calculations. 3. Suppose Wild Boar had been working at less than full capacity, producing 9,000 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Wild Boar should accept for Stronglast under these conditions. (Ignore the previous $36 selling price.)