Business, 04.05.2021 18:50 19thomasar

As a reminder, the Lawn Mower Division is currently producing at only 70% capacity. Home Depot recently requested 50 additional EGO lawn mowers. The normal sale price for EGO lawn mowers is $549, yet Home Depot has offered only $400 each. Further, assume that in order to meet the spike in demand, Green Lawn Corp. must pay a special order fee of $600 to its main supplier, Supplier Corp, for the extra lawn mowers. Jake said that he was considering rejecting the special order due to the unprofitability of the lawn mower division and the incremental special order fee. Using the relevant information identified in the prior problem, complete the analysis below. Round to the nearest whole number and do not use decimals. Step 1: Calculate all of the per unit costs. Cost Data (per unit) Direct Materials $40 Direct Labor $84 Variable Overhead $25 Fixed Overhead $35 Sales Commission Special Order Fee *2.5% of sales price
Step 2: Analyze the special order contribution margin per unit and in total, Sales Price / unit Costs / unit CM$ / unit # units sold Total CM $ Note the available capacity and overall contribution margin. You will report these values to your manager in the next step after reviewing the feedback for this problem.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 06:40, ayleenmorar

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct. d.

Answers: 2

continue

Business, 22.06.2019 09:40, Tyrant4life

Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?

Answers: 2

continue

Business, 22.06.2019 19:40, QueenNerdy889

An increase in the market price of men's haircuts, from $16 per haircut to $26 per haircut, initially causes a local barbershop to have its employees work overtime to increase the number of daily haircuts provided from 20 to 25. when the $26 market price remains unchanged for several weeks and all other things remain equal as well, the barbershop hires additional employees and provides 40 haircuts per day. what is the short-run price elasticity of supply? nothing (your answer should have two decimal places.) what is the long-run price elasticity of supply? nothing (your answer should have two decimal places.)

Answers: 1

continue

Business, 23.06.2019 02:30, 310000982

On december 1, 2017, bigham corporation pays a dividend of $4.00 on each share of its common stock. vanessa and gena, two unrelated shareholders, each own 5,000 shares of the stock. vanessa has owned her stock for two years while gena purchased her stock on november 3, 2017. how does each shareholder treat the $20,000 dividend from bigham

Answers: 3

continue

You know the right answer?

As a reminder, the Lawn Mower Division is currently producing at only 70% capacity. Home Depot recen...