Strative costs would not be incurred

Reference no: EM13252220

3
6
.
Salisbury Corporation h
as been producing and selling 30,000 caps a year. The company has the capacity to produce 50,000 caps with its present facilities. The following information is also available:
S
elling price per unit:
$35
Variable costs per unit:
Manufacturing
$14
Selling and Administrative
$
6
Fixed costs in total:
Manufacturing
$128,000
Selling and Administrative
$56,000
Gilbert Company has contacted Salisbury about purchasing 10,000 units at $24 each. A new customer who
wants 20,000 units (all or nothing) right now also contacted Salisbury. Salisbury is wondering if they should sell to Gilbert Company or should take the offer by the new customer. Unfortunately, Salisbury cannot take both offers. For the new customer, variable selling and admini
strative costs would not be incurred. What is Salisbury's minimum price in order for them to accept the offer from the new customer (instead of Gilbert Company)?

Reference no: EM13252220

Questions Cloud

Ind the acceleration under the action of force farrowbold : A force Farrowbold applied to an object of mass m1 produces an acceleration of 3.40 m/s2. The same force applied to a second object of mass m2 produces an acceleration of1.60 m/s2. If m1 and m2 are combined into one object

Explain the reaction of calcium oxide with the pollutant : The reaction of calcium oxide with the pollutant, sulfur trioxide, to produce calcium sulfate has been proposed as one way to remove the the SO3 from the smoke resulting from burning high sulfur coal (as in a power plant).

Find the magnitude of the current that the wire carries : A 2.5 cm-long horizontal wire segment has mass 0.15 g and carries a current sufficiently large that it levitates when the segment is in a region of B field upward with magnitude 1.5 T

Compute standard enthalpy change and standard free energy : A maximum of 1.89 mg of AgCl will dissolve in 1.00 L of solution at 25.0 C. A maximum of 5.26 mg of AgCl will dissolve in 1.00 L of solution at 50.0 C. Use this information to calculate standard enthalpy change and standard free energy change for ..

Strative costs would not be incurred : Strative costs would not be incurred. What is Salisbury's minimum price in order for them to accept the offer from the new customer (instead of Gilbert Company)?

Calculate the value required for the resistor labeled r : On a breadboards, hook up an IR LED to provide an infrared light source for signaling the phototransistor as shown in Figure 2 below. Use a pushbutton switch to turn the IR LED on and off.

Discharge pursuant to the provision of that law : Harry Hulk is employed as a cargo handler by Scarewest Airlines. He permanently injured his back and cannot lift more than five pounds. Consequently, he is unable to work as a cargo handler. Scarewest transferred him to a vacancy in the mail room ..

What are differences between volatile and nonvolatile memory : What are the differences between volatile and nonvolatile memory What are advantages and disadvantages of volatile and nonvolatile memories

Find the direction of the electric field and explain : At a particular instant of time a light beam traveling in the positive x direction, find the direction of the electric field and explain

User Account

All Pages