The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: E (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit marketing cost per unit. Read the requirements of Stronglast plus half of the Requ KAssume that O Requirements - X X Jucing the 3,0 O Data Table - X Deter 1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Chesapeake offer? Show your calculations. 3. Suppose Panther had been working at less than full capacity, producing 9,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions. (Ignore the previous $41 selling price.) Direct materials 9 Direct manufacturing labor Requ Strong hther so that her $38 per u verlast and 3,000 units of lations. 12 Manufacturing overhead Panth manu $ 24 the following table for hasing 3,000 Total manufacturing cost Manufacturing overhead cost per unit is based on variable cost per unit of $7 and fixed costs of $62,500 (at full capacity of 12,500 units). Marketing cost per unit, all variable, is $2, and the selling price is $48. Sellin Print Done Print Done Total Contribution margin per unit Contribution margin from 201 10 selling 3,000 units 60000 30000 90000 choose from any list or enter any number in the input fields and then click Check Answer.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please do not decline this question all the given information is in either one of the two pictures. Please, answer question 2.

The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows:
E (Click the icon to view the cost per unit information.)
A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit of Stronglast plus half of the
marketing cost per unit.
Read the equirements
Requirement 1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.)
Determine the formula for calculating the opportunity cost, then calculate the opportunity cost of producing the 3,000 units of Stronglast.
Selling price per unit
Total variable cost per unit
Units
Opportunity cost
48
2$
21
) x
3,000
81,000
Requirement 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of Everlast and 3,000 units of
Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Apex offer? Show your calculations.
Panther is considering manufacturing 9,500 units of Everlast and 3,000 units of Stronglast and purchasing 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. Begin by completing the following table for
manufactured Stronglast units and purchased Everlast units.
Manufacture
Purchase
Stronglast
Everlast
Total
Selling price per unit
41
48
Total variable cost per unit
38
20
10
Contribution margin per unit
Contribution margin from
| selling 3,000 units
60000
30000
90000
Choose from any list or enter any number in the input fields and then click Check Answer.
Transcribed Image Text:The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: E (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit of Stronglast plus half of the marketing cost per unit. Read the equirements Requirement 1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) Determine the formula for calculating the opportunity cost, then calculate the opportunity cost of producing the 3,000 units of Stronglast. Selling price per unit Total variable cost per unit Units Opportunity cost 48 2$ 21 ) x 3,000 81,000 Requirement 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Apex offer? Show your calculations. Panther is considering manufacturing 9,500 units of Everlast and 3,000 units of Stronglast and purchasing 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. Begin by completing the following table for manufactured Stronglast units and purchased Everlast units. Manufacture Purchase Stronglast Everlast Total Selling price per unit 41 48 Total variable cost per unit 38 20 10 Contribution margin per unit Contribution margin from | selling 3,000 units 60000 30000 90000 Choose from any list or enter any number in the input fields and then click Check Answer.
The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows:
E (Click the icon to view the cost per unit information.)
A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit of Stronglast plus half of the
marketing cost per unit.
Read the requirements.
- X
Requi
(Assume that
Requirements
Data Table
Deter
Bucing the 3,0
1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is
worked.)
Direct materials
$
9
2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may
accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of
Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would
charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should
Panther accept the Chesapeake offer? Show your calculations.
Direct manufacturing labor
3
Requi
Strong
hther so that
her $38 per u
verlast and 3,000 units of
lations.
12
Manufacturing overhead
Panth
$
24
hasing 3,000
the following table for
Total manufacturing cost
manut
Manufacturing overhead cost per unit is based on variable cost per unit of $7 and
fixed costs of $62,500 (at full capacity of 12,500 units). Marketing cost per unit, all
variable, is $2, and the selling price is $48.
3. Suppose Panther had been working at less than full capacity, producing 9,500 units of Everlast, at the time the
Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions.
(Ignore the previous $41 selling price.)
Sellin
Print
Done
Print
Done
Total
Contribution margin per unit
20
10
Contribution margin from
selling 3,000 units
60000
30000
90000
Choose from any list or enter any number in the input fields and then click Check Answer.
2 parts
Clear AL
Cinol Choolk
Transcribed Image Text:The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: E (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. - X Requi (Assume that Requirements Data Table Deter Bucing the 3,0 1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) Direct materials $ 9 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Chesapeake offer? Show your calculations. Direct manufacturing labor 3 Requi Strong hther so that her $38 per u verlast and 3,000 units of lations. 12 Manufacturing overhead Panth $ 24 hasing 3,000 the following table for Total manufacturing cost manut Manufacturing overhead cost per unit is based on variable cost per unit of $7 and fixed costs of $62,500 (at full capacity of 12,500 units). Marketing cost per unit, all variable, is $2, and the selling price is $48. 3. Suppose Panther had been working at less than full capacity, producing 9,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions. (Ignore the previous $41 selling price.) Sellin Print Done Print Done Total Contribution margin per unit 20 10 Contribution margin from selling 3,000 units 60000 30000 90000 Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts Clear AL Cinol Choolk
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