Title: Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding Post by: jerico on Mar 14, 2015 Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:
Output units 20,000 tables Machine-hours 8,000 hours Direct manufacturing labor-hours 10,000 hours Direct materials per unit $105 Direct manufacturing labor per hour $10 Variable manufacturing overhead costs $322,500 Fixed manufacturing overhead costs $1,200,000 Product and process design costs $1,100,000 Marketing and distribution costs $1,125,000 Grounded Coffee Products is approached by an overseas customer to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order? A) $146.125 B) $1346.125 C) $126.125 D) $946.125 Title: Re: Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of ad Post by: cyborg on Mar 14, 2015 Content hidden
Title: Re: Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding Post by: jerico on Mar 23, 2015 This solved my problem perfectly, thank you for your kind input.
Title: Re: Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding Post by: cyborg on Mar 23, 2015 Cool! No problem.
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