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Author Question: Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 25% markup ... (Read 97 times)

Garrulous

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Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 25% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:
 
Output units1500phones
Machine-hours1100hours
Direct manufacturing labor-hours1200hours
 
Direct materials per unit$23 
Direct manufacturing labor per hour$9 
Variable manufacturing overhead costs$214,500 
Fixed manufacturing overhead costs$126,700 
Product and process design costs$143,400 
Marketing and distribution costs$154,045 

Quick Connect Products is approached by an overseas customer to fulfill a one-time-only special order for 150 units. All cost relationships remain the same except for a one-time setup charge of $2025. 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?
◦ $30.20
◦ $173.20
◦ $186.70
◦ $188.50


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Marked as best answer by Garrulous on Mar 6, 2021

qytan

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Garrulous

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Reply 2 on: Mar 6, 2021
Gracias!


dawsa925

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

 

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