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Author Question: Longball Company manufactures basketball backboards. The following information pertains to the ... (Read 60 times)

DelorasTo

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Longball Company manufactures basketball backboards. The following information pertains to the company's normal operations per month: 

Output units15,000 boards
Machine-hours4,000 hours
Direct manufacturing labor-hours5,000 hours
Direct manufacturing labor per hour$12
Direct materials per unit$100
Variable manufacturing overhead costs$150,000
Fixed manufacturing overhead costs$300,000
Product and process design costs$200,000
Marketing and distribution costs$250,000

Required: 
a.  For long-run pricing, what is the full-cost base per unit?
b.  Longball Company is approached by an overseas city to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for an additional one-time setup charge of $40,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order?


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Marked as best answer by DelorasTo on Mar 6, 2021

BAOCHAU2803

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DelorasTo

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Reply 2 on: Mar 6, 2021
Gracias!


Joy Chen

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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