Rianne Company produces a light fixture with the following unit cost:
Direct materials $2
Di...
Business, 11.05.2021 16:20 heybrothwrlogan
Rianne Company produces a light fixture with the following unit cost:
Direct materials $2
Direct labor 1
Variable overhead 3
Fixed overhead 2
Unit cost $8
The production capacity is 300,000 units per year. Because of a depressed housing market, the company expects to produce only 180,000 fixtures for the coming year. The company also has fixed selling costs totaling $500,000 per year and variable selling costs of $1 per unit sold. The fixtures normally sell for $12 each.
At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 100,000 fixtures for $7 each. The customer also offered to pay all transportation costs. Since there would be no sales commissions involved, this order would not have any variable selling costs.
Required:
Conceptual Connection: Based on a quantitative (numerical) analysis, should the company accept the order?
Answers: 2
Business, 22.06.2019 06:30, mjasmine3280
The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.
Answers: 3
Business, 22.06.2019 11:00, jilliand2030
Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logistics management? provide examples of competing firms that differ in the level of each service output provided to customers?
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Business, 22.06.2019 21:00, elenasoaita
Describe what fixed costs and marginal costs mean to a company.
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