Graham Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using...
Graham Corporation has the excess manufacturing capacity to fill
a special order from Nash, Inc. Using Graham’s normal costing
process, variable costs of the special order would be $15,000 and
fixed costs would be $25,000. Of the fixed costs, $4,000 would be
for unavoidable overhead costs, and the remainder for rent on a
special machine needed to complete the order.
What is the minimum price Graham should quote to Nash?
| Minimum price | $
|
Homework Answers
ANSWER:
Minimum price = variable costs + avoidable fixed costs
= $15000 + ($25000 - $4000)
= $15000 + $21000
= $36000
Add Answer to:
Graham Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using...
A manufacturer operating with excess capacity has been asked to fill a special order at a...
A manufacturer operating with excess capacity has been asked to fill a special order at a selling price of 58.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.50 for direct labor, $1.00 for variable overhead, and $0.75 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost...
A customer has requested that Lewelling Corporation fill a special order for 2,600 units of product...
A customer has requested that Lewelling Corporation fill a special order for 2,600 units of product S47 for $31 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $20.70: Direct materials $ 6.20 Direct labor 3.00 Variable manufacturing overhead 3.30 Fixed manufacturing overhead 8.20 Unit product cost $ 20.70 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed...
A customer has requested that Lewelling Corporation fill a special order for 3,000 units of product...
A customer has requested that Lewelling Corporation fill a special order for 3,000 units of product S47 for $30 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $21.30: Direct materials $ 5.40 Direct labor 6.00 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 7.40 Unit product cost $ 21.30 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed...
A customer has requested that L Corporation fill a special order for 2,900 units of product...
A customer has requested that L Corporation fill a special order for 2,900 units of product R35 for $34 a unit. While the product would be modified slightly for the special order, product R35's normal unit product cost is $24.60: Direct materials $ 6.50 Direct labor 6.00 Variable manufacturing overhead 3.60 Fixed manufacturing overhead 8.50 Unit product cost $ 24.60 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed...
A customer has requested that Lewelling Corporation fill a special order for 2,000 units of product...
A customer has requested that Lewelling Corporation fill a special order for 2,000 units of product S47 for $40 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $18.30: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 4.40 6.00 1.50 6.40 $18.30 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing...
James & Co., which has excess capacity, received a special order for 4,000 units at a...
James & Co., which has excess capacity, received a special
order for 4,000 units at a price of $18 per unit. Currently,
production and sales are budgeted for 25,000 units without
considering the special order.
Budget information for the current year is presented below:
Sales
$
900,000
Less: Cost of goods
sold 600,000
Gross margin
$ 300,000
Less: Operating
expenses 200,000
Net income
...
A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product...
A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $27 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $20.50: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 5.80 4.00 2.90 7.80 $20.50 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing...
A customer has requested that Lewelling Corporation fill a special order for 2,300 units of product...
A customer has requested that Lewelling Corporation fill a special order for 2,300 units of product S47 for $28 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $21.80: Direct materials $ 5.90 Direct labor 5.00 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 7.90 Unit product cost $ 21.80 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed...
James & Co., which has excess capacity, received a special order for 4,000 units at a...
James & Co., which has excess capacity, received a special
order for 4,000 units at a price of $18 per unit. Currently,
production and sales are budgeted for 25,000 units without
considering the special order.
Budget information for the current year is presented below:
Sales
$
900,000
Less: Cost of goods
sold 600,000
Gross margin
$ 300,000
Less: Operating
expenses 200,000
Net income
...
11. A customer requested that PaperMate Corporation fill a special order for 3,000 units of product Q41 for $25.00...
11. A customer requested that PaperMate Corporation fill a special order for 3,000 units of product Q41 for $25.00 a unit. While the product would be modified slightly for the special order, product Q41's normal unit product cost is $21.40: Direct materials $5.70 Direct labor 3.40 Variable manufacturing overhead 5.80 Fixed manufacturing overhead 6.50 Unit product cost $21.40 The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to...
A manufacturer operating with excess capacity has been asked to fill a special order at a selling price of 58.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.50 for direct labor, $1.00 for variable overhead, and $0.75 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost...
A customer has requested that Lewelling Corporation fill a special order for 2,000 units of product S47 for $40 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $18.30: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 4.40 6.00 1.50 6.40 $18.30 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing...
James & Co., which has excess capacity, received a special
order for 4,000 units at a price of $18 per unit. Currently,
production and sales are budgeted for 25,000 units without
considering the special order.
Budget information for the current year is presented below:
Sales
$
900,000
Less: Cost of goods
sold 600,000
Gross margin
$ 300,000
Less: Operating
expenses 200,000
Net income
...
A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $27 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $20.50: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 5.80 4.00 2.90 7.80 $20.50 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing...
James & Co., which has excess capacity, received a special
order for 4,000 units at a price of $18 per unit. Currently,
production and sales are budgeted for 25,000 units without
considering the special order.
Budget information for the current year is presented below:
Sales
$
900,000
Less: Cost of goods
sold 600,000
Gross margin
$ 300,000
Less: Operating
expenses 200,000
Net income
...
11. A customer requested that PaperMate Corporation fill a special order for 3,000 units of product Q41 for $25.00 a unit. While the product would be modified slightly for the special order, product Q41's normal unit product cost is $21.40: Direct materials $5.70 Direct labor 3.40 Variable manufacturing overhead 5.80 Fixed manufacturing overhead 6.50 Unit product cost $21.40 The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to...
Most questions answered within 3 hours.
-
1.What process is pushing back against gravity in the very
center (the core) of sun-like stars?...
asked 13 minutes ago -
This question is from the textbook "Python for ArcGIS" by Laura
Tateosian:
Write a script "triangles.py"...
asked 11 minutes ago -
Which of the following is an impediment that makes it
difficult for firms to achieve the...
asked 12 minutes ago -
Calculate the amount of heat needed to boil 123.g of octane
(C8H18), beginning from a temperature...
asked 20 minutes ago -
my
prof asked us to make a problem set then we find solve it
Chi-Square Test...
asked 28 minutes ago -
In recent years, 80% of those accused of Driving Under the
Influence (DUI) get convicted (includes...
asked 37 minutes ago -
Why does Max Weber distinguish between "power," "authority," and
different types of authority? What is he...
asked 37 minutes ago -
What would the solow growth model look like if there was a
production function which had...
asked 42 minutes ago -
A company project has an initial cost of $40,000, expected net
cash flows of $9,000 per...
asked 44 minutes ago -
How do you use strategy in your current position or how does
your current position align...
asked 46 minutes ago -
a person's ability to be properly diagnosed with a
disease/condition can be affected by the person;s...
asked 46 minutes ago -
John needs 40 Eternal Light flashlights. Each Eternal Light
flashlight requires 3 bulbs, and each bulb...
asked 54 minutes ago