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Windsor World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows. DM DL Variable-MOH Fixed-MOH Variable SG&A Fixed SG&A Total (a) $1.05 0.80 (b) 0.25 Yes V 1.60 0.30 Windsor World normally sells its CardioBands for $11 each. Jerry's Gym wants to purchase 50 of these workout products to incorporate in two of its cardio classes, but it wants a special price of $200 for the complete order. Windsor World has enough production capacity to take on this special order. 0.85 $4.85 Your answer is correct. Should Windsor World accept this special order, assuming all relevant costs will be incurred for the order? How much profit or loss would this deal generate for Windsor World? (Round answer to 2 decimal places, e.g. 15.25.) This deal will generate profit of $ 80.00 If Windsor World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ per unit

Windsor World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows. DM DL Variable-MOH Fixed-MOH Variable SG&A Fixed SG&A Total (a) $1.05 0.80 (b) 0.25 Yes V 1.60 0.30 Windsor World normally sells its CardioBands for $11 each. Jerry's Gym wants to purchase 50 of these workout products to incorporate in two of its cardio classes, but it wants a special price of $200 for the complete order. Windsor World has enough production capacity to take on this special order. 0.85 $4.85 Your answer is correct. Should Windsor World accept this special order, assuming all relevant costs will be incurred for the order? How much profit or loss would this deal generate for Windsor World? (Round answer to 2 decimal places, e.g. 15.25.) This deal will generate profit of $ 80.00 If Windsor World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ per unit

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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Windsor World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows. DM DL Variable-MOH S Fixed-MOH Fixed SG&A Total $1.05 (a) Variable SG&A 0.30 0.85 0.80 0.25 (b) 1.60 Windsor World normally sells its CardioBands for $11 each. Jerry's Gym wants to purchase 50 of these workout products to incorporate in two of its cardio classes, but it wants a special price of $200 for the complete order. Windsor World has enough production capacity to take on this special order. Yes V $4.85 Your answer is correct. Should Windsor World accept this special order, assuming all relevant costs will be incurred for the order? How much profit or loss would this deal generate for Windsor World? (Round answer to 2 decimal places, e.g. 15.25.) This deal will generate profit profit of $ 80.00 If Windsor World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ per unit
Transcribed Image Text:Windsor World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows. DM DL Variable-MOH S Fixed-MOH Fixed SG&A Total $1.05 (a) Variable SG&A 0.30 0.85 0.80 0.25 (b) 1.60 Windsor World normally sells its CardioBands for $11 each. Jerry's Gym wants to purchase 50 of these workout products to incorporate in two of its cardio classes, but it wants a special price of $200 for the complete order. Windsor World has enough production capacity to take on this special order. Yes V $4.85 Your answer is correct. Should Windsor World accept this special order, assuming all relevant costs will be incurred for the order? How much profit or loss would this deal generate for Windsor World? (Round answer to 2 decimal places, e.g. 15.25.) This deal will generate profit profit of $ 80.00 If Windsor World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ per unit
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