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Seibel Products manufactures chairs. The company has a policy of adding a 20% markup to full costs, and they currently have excess capacity. The following information pertains to the company's normal operations per month: Output units Machine-hours Direct manufacturing labor-hours Direct materials per unit Direct manufacturing labor per hour Variable manufacturing overhead $161.250 costs Fixed manufacturing overhead costs $600,000 Product and process design costs $450,000 Marketing and distribution costs $562,500 O $80.85 O $56.00 O $57,38 30,000 tables 8,000 hours 10,000 hours Seibel Products is approached by an overseas customer to fulfill a one-time-only special order for 2,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. 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? O $67.38 O $111.13 $50 $6

Seibel Products manufactures chairs. The company has a policy of adding a 20% markup to full costs, and they currently have excess capacity. The following information pertains to the company's normal operations per month: Output units Machine-hours Direct manufacturing labor-hours Direct materials per unit Direct manufacturing labor per hour Variable manufacturing overhead $161.250 costs Fixed manufacturing overhead costs $600,000 Product and process design costs $450,000 Marketing and distribution costs $562,500 O $80.85 O $56.00 O $57,38 30,000 tables 8,000 hours 10,000 hours Seibel Products is approached by an overseas customer to fulfill a one-time-only special order for 2,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. 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? O $67.38 O $111.13 $50 $6

FINANCIAL ACCOUNTING
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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Seibel Products manufactures chairs. The company has a policy of adding a 20% markup to full costs, and they currently have excess capacity. The following information pertains to the company's normal operations per month: Output units Machine-hours Direct manufacturing labor-hours Direct materials per unit Direct manufacturing labor per hour Variable manufacturing overhead costs 30,000 tables 8,000 hours 10,000 hours $161,250 Fixed manufacturing overhead costs $600,000 Product and process design costs $450,000 Marketing and distribution costs $562,500 O $80.85 O $56.00 $50 $6 Seibel Products is approached by an overseas customer to fulfill a one-time-only special order for 2,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. 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? O $57,38 O $67.38 O $111.13
Transcribed Image Text:Seibel Products manufactures chairs. The company has a policy of adding a 20% markup to full costs, and they currently have excess capacity. The following information pertains to the company's normal operations per month: Output units Machine-hours Direct manufacturing labor-hours Direct materials per unit Direct manufacturing labor per hour Variable manufacturing overhead costs 30,000 tables 8,000 hours 10,000 hours $161,250 Fixed manufacturing overhead costs $600,000 Product and process design costs $450,000 Marketing and distribution costs $562,500 O $80.85 O $56.00 $50 $6 Seibel Products is approached by an overseas customer to fulfill a one-time-only special order for 2,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. 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? O $57,38 O $67.38 O $111.13
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