User Account

All Pages

What is the minimum sales price per unit

Assignment Help Accounting Basics
Reference no: EM131619480

Problem - Marjess Corp. manufactures shirts, and it is considering whether or not it should accept a special order for 5,000 shirts. The normal selling price of a shirt is $45 and its unit product cost is $36 as shown below:

Direct materials                         $8.00

Direct labor                               $16.00

Manufacturing overhead             $12.00

Unit product cost                        $36.00

Most of the manufacturing overhead is fixed: however. 30% of it is variable with respect to the number of shirts produced. The special order will require customizing the shirts for the customer with an additional direct materials cost of $5 per shirt and an additional direct labor cost of $4 per shirt. If it accepts this order. Marjess will have to rent special equipment to handle the shirt customization at a cost of $22,000. The order would have no effect on Marjess Corporation's regular sales and it could be fulfilled using the company's existing capacity without affecting any other order.

What is the minimum (i.e.. the break-even) sales price per unit that Marjess should charge for this special order?

a. $17.00

b. $49.40

c. $32.00

d. $41.00

Reference no: EM131619480

Questions Cloud

Determine the optimal value for q that maximizes probability : The demand for an item follows N(IO, 2). It is required to avoid the shortage. Let Q be the order quantity. Assuming Q to be an integer between I 0 and 150.
Discuss two opportunities that will utilize the skills : Discuss at least two opportunities that will utilize the skills of professional writing and communication within your career.
Prepare a flexible budget : Fixed costs are expected to be $100 for the month. Prepare a flexible budget for 650?, 700?, and 850 wreaths
Bibliography on business and personal ethics should converge : Prepare an Annotated Bibliography about Business and personal ethics should/should not converge. Diversity awarenessin healthcare - mandatory or voluntary.
What is the minimum sales price per unit : What is the minimum (i.e.. the break-even) sales price per unit that Marjess should charge for this special order
Monthly payment be to this worker that had the accident : What will the monthly payment be to this worker that had the accident?
Make plot of the number of entities in the queue versus time : Make a plot of the number of entities in the queue versus time. Can you tell when failures occurred? After a repair, about how long does it take for the queue.
Calculate standard deviation of the portfolio : Calculate the standard deviation of the portfolio using Markowitz formula.
What should happen to percentage of time down : In the failures occorred at low frequency compaied with the processing time of entity. Tune to failure was 1000 minutes, and interarrival time was 10 minutes.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd