Business, 06.08.2021 22:10 brooklyn4932

Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,000 of the US umbrellas at a price of $16 each. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella: Direct materials $9.00
Direct labor 5.00
Variable manufacturing overhead 5.50
Fixed manufacturing overhead 2.50
Total cost $22.00
Regular sales price $28.00
Required:
1. Compute the incremental profit (or loss) from accepting the special order.
2. Should Mohave accept the special order?
3. Suppose that the special order had been to purchase 2,900 umbrellas for $17.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario.
4. Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:30, haley816

Big trail running company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. they feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. based on research the following information was gathered for the upcoming year: machining department finishing department estimated manufacturing overhead by department $ 600 comma 000 $ 400 comma 000 trail running shoes 440 comma 000 machine hours 11 comma 000 direct labor hours running apparel 60 comma 000 machine hours 39 comma 000 direct labor hours manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. at the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: machining department finishing department trail running shoes 442 comma 000 hours 10 comma 500 hours running apparel 57 comma 000 hours 40 comma 000 hours how much manufacturing overhead will be allocated to the trail running shoes

Answers: 3

continue

Business, 22.06.2019 11:40, tansebas1107

You are a manager at asda. you have been given the demand data for the past 10 weeks for swim rings for children. you decide to run multiple types of forecasting methods on the data to see which gives you the best forecast. if you were to use exponential smoothing with alpha =.8, what would be your forecast for week 22? (the forecast for week 21 was 1277.) week demand 12 1317 13 1307 14 1261 15 1258 16 1267 17 1256 18 1268 19 1277 20 1277 21 1297

Answers: 3

continue

Business, 22.06.2019 22:50, abolton04

What is one of the advantages of getting a government-sponsored mortgage instead of a conventional mortgage

Answers: 1

continue

Business, 23.06.2019 01:30, paigehixson342

True or false: it is generally better to concentrate your exercise time on the weekends only for maximum aerobic benefit.

Answers: 1

continue

You know the right answer?

Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a...