Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit: Materials $ 18.30 L
abor 7.30 Variable overhead 2.30 Fixed overhead ($957,900 per year; 103,000 units per year) 9.30 Total $ 37.20 Simpson Company has approached Andreasen with an offer to buy 8,000 thermostats at a price of $33 each. The regular price is $53. Andreasen has the capacity to produce the 8,000 additional units without affecting its current production of 103,000 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $1.30 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $28,500. Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year. (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) b. Do you agree with the decision to accept the special order
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Based on the available data for a player of Titus Johnston's profile, his guaranteed amount would be $32.74 million.
<h3>Calculations and Parameters</h3>Given that Casey Deeselis a sports agent negotiating a contract for Titus Johnston, an athlete in the National Football League
He has generated data on 506 NFL athletes who have recently signed new contracts and who get paid a percentage of his team's plays that the athlete is on the field.
With this, each award they get, each minute they spend on the field, each game missed, and then guaranteed money are all accounted for which is displayed in the attached image below.
If we observe the best-pruned tree given below, based on the arrows and circles,
For Snap percent = 96
Awards = 7
Games missed = 3
The conclusion is that with the profile of Titus Johnston, he would receive a guaranteed amount of $32.74 million.
Read more about regression tree here:
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