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Southern New Hampshire University *

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311

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Mechanical Engineering

Date

Jan 9, 2024

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docx

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2

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Sheffield World manufactures aworkout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows. DM $1.10 DL 080 Variable-MOH ~ 0.30 Fixed-MOH 155 Variable SG&A 0.20 Fixed SG&A 085 Total $4.80 Sheffield World normally sells its CardioBands for $14 each. Jerry’s Gym wants to purchase 50 of these workout products to incorporate in two of its cardio classes, but it wants a special price of $195 for the complete order. Sheffield World has enough production capacity to take on this special order. (a) Your Answer Correct Answer ' Youranswer is correct Should Sheffield World accept this special order, assuming all relevant costs will be incurred for the order? How much profit or loss would this deal generate for Sheffield World? (Round answer to 2 decimal places, eg. 15.25.) This dealwill generate [ proft /] of | 75 eTextbook and Media Assistance Used Solution Attempts: 1of 2 used
(b) Your Answer Correct Answer ' Your answer is correct. If Sheffield World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order? (Round answer to 2 decimal places, eg. 15.25.) Miimamseligorice § eTextbook and Media Assistance Used Solution Attempts: 2 of 2 used
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