that freezers. He manufactures one standard freezer available for sale and he also manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as show below. Quantity Sold Sales Material Labor Variable overhead Fixed overhead Income Special Order Sales Standard Sales Total 7,700 6,900 14,600 $959,100 $2,067,900 $220,800 $467,200 $324,300 $686,200 Material per unit $1,108,800 $246,400 $361,900 $23,100 $71,000 $406,400 East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co. is willing to pay $146 for each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have tor spend $7,700 for a special device that will only be used for this special order. $20,700 $43,800 $58,300 $129,300 $335,000 $741,400 Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Labor per unit Variable overhead per unit Total variable costs per unit
that freezers. He manufactures one standard freezer available for sale and he also manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as show below. Quantity Sold Sales Material Labor Variable overhead Fixed overhead Income Special Order Sales Standard Sales Total 7,700 6,900 14,600 $959,100 $2,067,900 $220,800 $467,200 $324,300 $686,200 Material per unit $1,108,800 $246,400 $361,900 $23,100 $71,000 $406,400 East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co. is willing to pay $146 for each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have tor spend $7,700 for a special device that will only be used for this special order. $20,700 $43,800 $58,300 $129,300 $335,000 $741,400 Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Labor per unit Variable overhead per unit Total variable costs per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
Transcribed Image Text:Do not enter dollar signs or commas in the input boxes.
Bound all answers to the nearest whole number.
a) What is the foregone contribution margin per unit of standard sales if they accept the special order?
Regular selling price per unit
Material per unit
Labor per unit
Variable overhead per unit
Total variable costs per unit
Foregone CM per unit
b) What is the total relevant costs for each unit of the special order?
Material per unit
Labor per unit
Variable overhead per unit
Special device (per unit)
Foregone CM per unit
Total relevant costs per unit
Transcribed Image Text:Shim Amon owns a small business that manufactures and sells freezers. He manufactures one standard freezer available for sale and he also
manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as shown
below.
Quantity
Sales
Material
Labor
Variable overhead
Fixed overhead
Income
Soldi
Special Order Sales Standard Sales Total
7,700
6,900 14,600
$1,108,800
$246,400
$361,900
$23,100
$71,000
$406,400
Variable overhead per unit
$959,100 $2,067,900
$220,800 $467,200
$324,300 $686,200
East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out
on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co is willing to pay $146 for
each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have to
spend $7,700 for a special device that will only be used for this special order.
Total variable costs per unit
$20,700 $43,800
$58,300 $129,300
$335,000 $741,400
Do not enter dollar signs or commas in the input boxes.
Bound all answers to the nearest whole number.
a) What is the foregone contribution margin per unit of standard sales if they accept the special order?
Regular selling price per unit
Material per unit
Labor per unit
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