Wilson Blossom is a leading producer of vinyl replacement windows. Thecompany's growth strategy focuses on developing domestic markets in largemetropolitan areas. The company operates a single manufacturing plant inKansas City with an annual capacity of 500,000 windows. Current production isbudgeted at 450,000 windows per year, a quantity that has been constant overthe past three years. Based on the budget, the accounting department hascalculated the following unit costs for the windows:(a1)Direct materials$55.00Direct labor19.00Manufacturing overhead16.00Selling and administrative14.00Total unit cost$104.00The company's budget includes $5,400,000 in fixed overhead and $3,150,000 infixed selling and administrative expenses. The windows sell for $150.00 each. A2% distributor's commission is included in the selling and administrativeexpenses.(a2)Your answer is partially correct.Your answer is correct.Calculate variable overhead per unit and variable selling and administrative costs per unit.(Round answers to 2 decimal places, e.g. 15.25.)$4Variable overhead per unit$7Variable selling and administrative costs per uniteTextbook and MediaAyayai, Finland's second largest homebuilder, has approached Wilson with an offer to buy75,000 windows during the coming year. Given the size of the order, Ayayai has requested a35% volume discount on Wilson's normal selling price. The contribution lost from regular sales25,000 units. Calculate the contribution from special order. (If net contribution is negative, enteramount with a negative sign, e.g. -5,285 or parentheses, e.g. (5,285). Round answer to O decimalplaces, e.g. 8,971.)$-833750Net contribution from special orderShould Wilson grant Ayayai 's request?NoeTextbook and Media

Given Data: Selling Price per unit150Direct material (per unit)55Direct labour (per unit)19Variable…

Answered: Wilson Blossom is a leading producer of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Hannibal Steel Company's Transport Services Department provides trucks to haul ore from the company's mine to its two steel mills- the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $237,500 per year, consisting of $0.22 per ton variable cost and $187,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 64% of the Transport Services Department's capacity and the Southern Plant requires 36% During the year, the Transport Services Department actually hauled 126,000 tons of ore to the Northern Plant and 67,900 tons to the Southern Plant. The Transport Services Department Incurred $363,000 In cost during the year, of which $54,000 was variable and $309,000 was fixed. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the Transport Services Department's fixed costs should be charged to…
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