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dedylja [7]
3 years ago
8

Company A manufactures a moderately priced set of lawn games that sells for $125. The company currently manufactures and sells 2

,000 sets per year. The manufacturing costs include $40 for direct materials and $15 for direct labor per set. The overhead charge per set is $12, which consists entirely of fixed costs. Company A is considering a special purchase offer from a large retail firm, which has offered to by 500 sets for two years at a price of $110 per set. Company A has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity. What is the total relevant cost per unit to produce the units requested by the retail firm
Business
1 answer:
AfilCa [17]3 years ago
5 0

Answer:

$27,500

Explanation:

As mention in the question the company selling the 2000 seats

also the manufacturing cost is =$40

Direct labor cost =$15

As the seat company  A =500 seats

So the Direct Material Cost= seat company  A allotment *manufacturing cost

=500*40

=$20,000

Also the Direct labor cost =seat company  A allotment *direct labor cost

=$500*$15

=$7500

Therefore the total relevant cost of the firm is

=Direct Material cost +Direct labor cost

=$20,000+$7500

=$27,500

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3 years ago
Friendly's quick loans, inc., offers you "$4.10 for $5.10 or i knock on your door." this means you get $4.10 today and repay $5.
storchak [24]
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6 0
3 years ago
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Angie Silva has recently opened The Sandal Shop, a store that specializes in fashionable sandals in Brisbane, Australia. Angie h
Elza [17]

Incremental contribution margin:

$25,000 increased sales x 60% CM ratio           $15,000

                                                                             

Incremental fixed salary cost                                8,000

Increased net income                                            $7,000.

yes, the position should be converted.

In economics, the margin is profit after deducting expenses, expressed as a percentage. In investing, the margin is the deposit an investor leaves with a broker when borrowing money to buy a security.

The portion of a page or sheet outside the body of a printed product or document. 2: The outer boundary and adjoining surface of something: a ridge at the edge of the continental margin of a forest. 3: Any amount or measure or degree of substitution permitted or granted due to unforeseen circumstances or special circumstances was not subject to error.

Learn more about margin at

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6 0
2 years ago
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Tatiana [17]

Answer:

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Explanation:

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Painting Dept. $245,600           9,50                                    7       7

Finishing Dept.  82,500              1 1,500                               3         4

Totals                $328,100           21,000                             10           11

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3 0
3 years ago
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Answer:

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<u>Correct Answer:</u>

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