Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Marketing
New Topic  
jerico jerico
wrote...
Go to Answer
Posts: 4603
Rep: 8 0
9 years ago
Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers:

   Direct materials   $1,782
   Direct labor   810
   Variable manufacturing support   1,296
   Fixed manufacturing support   2,808
   Total manufacturing costs   6,696
   Markup (50%)   3,348
   Targeted selling price   $   10,044

Parker and Spitzer Manufacturing has excess capacity.

Required:
a.   What is the full cost of the product per unit if the marketing costs is $3,000?
b.   What is the contribution margin per unit?
c.   Which costs are relevant for making the decision regarding this one-time-only special order? Why?
d.   For Parker and Spitzer Manufacturing, what is the minimum acceptable price of this one-time-only special order?
e.   For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of $5,400 per unit? Why or why not?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
Read 873 times
4 Replies
Replies
Answer verified by a subject expert
cyborgcyborg
wrote...
#1
Top Poster
Posts: 4566
Rep: 218 1
9 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here

Related Topics

jerico Author
wrote...
#2
9 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
wrote...
#3
9 years ago
Cool! No problem.
wrote...
#4
3 years ago
thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1137 People Browsing
 124 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 507
  
 409
  
 424
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 249
Previous poll results: How often do you eat-out per week?