Oriole World manufactures a workout 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 0.75 Variable-MOH 0.30 Fixed-MOH 1.65 Variable SG&A 0.25 Fixed SG&A 0.95 Total $5.00 Oriole World normally sells its CardioBands for $11 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 $180 for the complete order. Oriole World has enough production capacity to take on this special order. Should Oriole World accept this special order, assuming all relevant costs will be incurred for the order? select an option Correct answer How much profit or loss would this deal generate for Oriole World? (Round ans
Oriole World manufactures a workout 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 |
0.75 |
|
|
Variable-MOH |
0.30 |
|
|
Fixed-MOH |
1.65 |
|
|
Variable SG&A |
0.25 |
|
|
Fixed SG&A |
0.95 |
|
|
Total |
$5.00 |
Oriole World normally sells its CardioBands for $11 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 $180 for the complete order. Oriole World has enough production capacity to take on this special order.
Should Oriole World accept this special order, assuming all relevant costs will be incurred for the order?
select an option Correct answer
How much profit or loss would this deal generate for Oriole World? (Round answer to 2 decimal places, e.g. 15.25.)
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If Oriole World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order?
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