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Question 14 Martin Company incurred the following costs for 50,000 units: Variable $180,000 costs Fixed costs 240,000 Martin has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $8,500 for shipping. If Martin wants to break even on the order, what should the unit sales price be? a) $5.30 b) $8.40 c) $3.60

Exercise 8-10 Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials   $ 4   Direct labor   9   Variable manufacturing overhead   7   Fixed manufacturing overhead   10   Total   $30   Flintrock, Inc., has offered to sell 10,000 units of part 231 to Concord for $32 per unit. If Concord accepts Flintrock’s offer, its freed-up facilities could be used to earn $11,700 in contribution margin by manufacturing part 240. In addition, Concord would eliminate 40% of the fixed overhead applied to part 231.(a) Calculate total relevant cost to make and net cost to buy. Total relevant cost to make $Enter total relevant cost to make in dollars   Net relevant cost to buy $Enter net relevant cost to buy in dollars   (b) Should Concord accept Flintrock’s offer?Select an option  YesNo     Click if you would like to Show Work for this question: Open Show Work

Exercise 23-2 Make or buy LO P1 Gelb Company currently manufactures 55,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $81,000 per year, and allocated fixed costs are $74,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 55,500 units and buying 55,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 55,500 units. (Round "variable cost per unit" answers to 2 decimal places.) Incremental Costs to Make Variable cost per unit Fixed manufacturing costs Total incremental cost to make…

Exercise 3.8 Cost Behavior, Flexible and Committed Resources State University's football team just received a bowl game invitation, and the students and alumni are excited. Holiday Travel Agency, located close to campus, decided to put together a bowl game package. For $50,000, a 737 jet could be chartered to take up to 170 people to and from the bowl city. A block of 85 hotel rooms could be confirmed for $400 each (a three-night commitment); Holiday Travel must pay for all the rooms in advance and cannot cancel any of them. The day of the game, a pregame buffet will be catered at $30 per person, and each person will receive a game favor package (consisting of a sweatshirt, a T-shirt, a commemorative pin with the school and bowl logos, and two pompons in the school's colors). All items in the favor package can be purchased by Holiday Travel on December 21 and will cost the agency $25 per set. Buses will be chartered in the bowl city to transport participants to and from the airport and…

Question 6 Amundsen Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling Total $ 10.10 $17.40 $ 2.70 $15.00 $ 2.75 $ 3.25 $51.20 An outside supplier has offered to sell the company all of these parts it needs. If the company accepts this offer, the facilities now being used to make the part would be idle and fixed manufacturing overhead would be reduced by 80% of current cost. The variable selling costs would be reduced to 40% of current cost. Required: What is the maximum amount the company should be willing to pay an outside supplier per unit for the part?

Question 45 Assume a division of HP Inc currently makes 50,000 circuit boards per year used in producing diagnostic electronic instruments at the cost of 150 per board, considering of variable costs per unit of $35 and feed costs per unit of $15. Further, assume Sarmina Corporation offers to sell HP the 50.000 circuit boards for $50 each if HP accepts this offer the facilities currently used to make the boards could be rented to one of HP's suppliers for $75,000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision.

QUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the EOQ. Calculate the re-order point if the organisation does not keep safety stock.