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Other Fields Homework Help Accounting Topic started by: jerico on Mar 14, 2015



Title: Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special
Post by: jerico on Mar 14, 2015
Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers:

   Direct materials   $400
   Direct manufacturing labor   120
   Variable manufacturing support   60
   Fixed manufacturing support   200
   Total manufacturing costs   780
   Markup (20% of total manufacturing costs)   156
   Estimated selling price   $936

For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order?
A) $580
B) $780
C) $520
D) $1,014


Title: Re: Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only spec
Post by: cyborg on Mar 14, 2015
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Title: Re: Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special
Post by: jerico on Mar 23, 2015
I can confidently say that it looks and sounds right lol Thank you :) Give this man a thumbs up.


Title: Re: Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special
Post by: cyborg on Mar 23, 2015
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.