Harcourt manufacturing (hm) has the capacity to produce 10,000 fax machines per year. hm currently produces and sells 7,000 units per year. the fax machines normally sell for $100 each. modem products has offered to buy 2,000 fax machines from hm for $60 each. unit-level costs associated with manufacturing the fax machines are $15 each for direct labor and $40 each for direct materials. product-level and facility-level costs are $50,000 and $65,000, respectively. how much would profit increase (decrease) if hm accepted this special order?
$10,000
$112,000
$10,000
$112,000

Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))

Amanda works as an industrial designer