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Author Question: Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a ... (Read 121 times)

tingc95

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on: Mar 6, 2021
Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: 

Direct materials$1,825
Direct labor900
Variable manufacturing support1,300
Fixed manufacturing support3,000
Total manufacturing costs$7,025.00
Markup (50%)3,512.50
Targeted selling price$   10,537.50

Swan Manufacturing has excess capacity. 

Required: 
a.What is the full cost of the product per unit if the marketing costs is $3,000?
b.What is the contribution margin per unit?
c.Which costs are relevant for making the decision regarding this one-time-only special order? 
Why?
d.For Swan Manufacturing, what is the minimum acceptable price of this one-time-only special 
order?
e. For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of $5,400 per unit? Why or why not?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by tingc95 on Mar 6, 2021

mariahkathleeen

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tingc95

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

Liamb2179

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Reply 3 on: Yesterday
Excellent

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