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Janesky Compamy has been asked by a customer to ship an additional 373 units of their product as a special emergency order. Sufficient materials are available in-house.
Units sold last month 2,577
Direct materials $492,198
Direct labor $326,418
Manufacturing variable overhead $411,368
Selling and administrative costs $312,694
Question 1: If the policy on such special orders is a markup (over cost) of 80%, what should you charge for the 373 units?
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Hutchinson Company had retained earnings of $15,000 on the balance sheet but disclosed in the footnotes that $2,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set asi..
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