Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000units, is as follows:Direct materialsDirect laborOverhead (2/3 of which is variable)Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa hasthe capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor. Req AlReg A2Selling priceLess Direct materialsReq B1Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge thedistributor which will generate an increase in operating income of $2 per unit? (Do not round intermediate calculations.)Special SaleDirect laborVanable overheadAdditional shipping costsContribution margin per unitReq B2Reg A1Req A2 >

In business and manufacturing, a "special order" refers to a unique or one-time purchase request for…

Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows: Direct materials Direct labor Overhead (2/3 of which is variable) $6 4 9 Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.

Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows: Direct materials Direct labor Overhead (2/3 of which is variable) $6 4 9 Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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