I need answer Accounting question Circuit Masters, Inc. (CMI), is presently operating at 80% of capacity andmanufacturing 123,000 units of a patented electronic component. Thecost structure of the component is as follows:Raw materials $ 6.30 per unitDirect labor 6.30 per unitVariable overhead 8.30 per unitFixed overhead $ 492,000 per yearAn Italian firm has offered to purchase 20,300 of the components at aprice of $25.5 per unit, FOB CMI'splant. The normal selling price is $32.9 per component. This specialorder will not affect any of CMI's "normal" business. Managementcalculated that the cost per component is $25.5, so it is reluctant toaccept this special order.Required:Calculate the fixed overhead per unit.

Fixed overhead per unit = Total fixed overhead / Number of units producedFixed overhead per unit =…

Answered: Circuit Masters, Inc. (CMI), is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Circult Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 130,000 units of a patented electronic component. The cost structure of the component is as follows: Raw materials Direct labor Variable overhead Fixed overhead $ 7.00 per unit 7.00 per unit 9.00 per unit $ 507,000 per year An Italian firm has offered to purchase 21,000 of the components at a price of $29.00 per unit, FOB CMI's plant. The normal selling price is $35.00 per component. This special order will not affect any of CMI's "normal" business. Management calculated that the cost per component is $26.90, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit. b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the fixed overhead per unit? Note: Round your answer to 2 decimal places. Fixed overhead per unit…
S Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 110,000 units of a patented electronic component. The cost structure of the component is as follows: Raw materials Direct labor Variable overhead Fixed overhead An Italian firm has offered to purchase 21,200 of the components at a price of $30.00 per unit, FOB CMI's plant. The normal selling price is $35.60 per component. This special order will not affect any of CMI's "normal" business. Management calculated that the cost per component is $27.70, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit. b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? $ 7.20 per unit 7.20 per unit 9.20 per unit $ 451,000 per year Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the fixed overhead per unit? Note: Round your answer to 2 decimal places. Fixed overhead per unit
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M7.
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