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jerico jerico
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Posts: 4603
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9 years ago
Quick Connect manufactures high-tech cell phones. Quick Connect 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   1,250   phones
   Machine-hours   750   hours
   Direct manufacturing labor-hours   700   hours
               
   Direct materials per unit   $20    
   Direct manufacturing labor per hour   $8    
   Variable manufacturing overhead costs   $175,000.00    
   Fixed manufacturing overhead costs   $126,300    
   Product and process design costs   $143,000    
   Marketing and distribution costs   $153,645

Quick Connect Products is approached by an overseas customer to fulfill a one-time-only special order for 120 units. All cost relationships remain the same except for a one-time setup charge of $1,500. 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) $24.48
B) $160.48
C) $176.98
D) $200.00
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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#1
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9 years ago
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jerico Author
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#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
wrote...
#3
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
wrote...
#4
4 years ago
great
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