A company has just received a special, one-time order for 1,000 units. Producing the order will have no effect on the production and sales of other units. The buyer's name will be stamped on each unit, at a cost of $1.50 per unit. Normal cost data, excluding stamping, follows: Direct materials…………………………… $ 10 per unit Direct labor……………………………….. 16 per unitVariable overhead………………………… 4 per unitAllocated fixed overhead…………………. 12 per unitAllocated fixed selling expense…………… 8 per unit Prepare an analysis that indicates the selling price per unit this company will require to earn $3,000 on the order.
What will be an ideal response?
| ? | Per Unit | For 1,000 Units |
| Variable costs of producing the special order: | ? | ? |
| Direct materials | $10.00 | $10,000 |
| Direct labor | 16.00 | 16,000 |
| Variable overhead | 4.00 | 4,000 |
| Additional variable cost | 1.50 | 1,500 |
| Total variable costs | ? | $31,500 |
| Desired profit | ? | 3,000 |
| Required revenue | ? | $34,500 |
Required selling price per unit ($34,500/1,000) | $ 34.50 | ? |
You might also like to view...
Turner Corporation has 150,000 shares of $12 par value common stock issued and outstanding. The board of directors of Turner Corporation declared a 3-for-1 stock split. Required:What dollar amount would be shown for common stock on the balance sheet after the stock split?
What will be an ideal response?
Direct marketers are most affected by which federal legislation?
a. Robinson-Patman Act b. 30-day rule c. Green River ordinances d. blue laws
Analysis of the paying habits of customers is studied as part of the sociocultural forces screening.
Answer the following statement true (T) or false (F)
In which type of individual incentive program does each task have an assigned amount of time for completion?
A. Straight piece-rate plan B. Differential piece-rate plan C. Standard hour plan D. Individual bonus plan E. Merit payment plan