A customer has requested that daleske corp

Assignment Help Strategic Management

Reference no: EM1330224

A customer has requested that Daleske Corp. fill a special order for 2000 units of product D84 for $20.30 a unit. While the product would be modified slightly for the special order, product D84's normal unit product cost is $18.50.

Direct materials = $6.80

Direct Labor = $3.40

Variable Manufacturing Overhead = $7.00

Fixed Manufacturing Overhead = $1.30

Unit Product cost = $ 18.50

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product D84 that would increase the variable costs by $2.50 a unit and that would require an investment of $7,000 in special molds that would have no salvage value. The special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would increase(decrease) by...($14,900), ($5,800), $3,600, or ($8,400)

Reference no: EM1330224

Questions Cloud

Strategies and interventions for motivating people : Discuss the various strategies and interventions that you have found successful in motivating and influencing people to accomplish certain goals.

Make use of a constructor to initialize employee information : make use of a constructor to initialize employee information. A payroll program that calculates the employees weekly pay after employee's name, hourly rate, and number of hours worked.

Explain why do velocity was so much higher in brazil : Compute the velocity for the two countries in 1985. Explain why do you think the velocity was so much higher in Brazil.

Intellectual properties and real properties : How to brief a case involving Intellectual Properties and Real Properties.

A customer has requested that daleske corp : A customer has requested that Daleske Corp. fill a special order for 2000 units of product D84 for $20.30 a unit. While the product would be modified slightly for the special order, product D84's normal unit product cost is $18.50.

Discuss training and development techniques : Evaluate a total score, and assign the organization to one of the three categories and Please comment briefly as to how the organization fits the characteristics of this category

Illustrate what is the major pros of the real gdp measure : Illustrate what is the major pros of the real GDP measure. Construct a price index giving all products equal weight.

Make a swing applet with a jbutton labeled : build a Swing applet with a JButton labeled "Who's number one?." When user clicks the button, display your favorite sport team in a large font (Use Houston Rockets for the sports team). Please save the file to JNumberOne.java

Essentials necessary for competence and alliance : Identify the three essentials necessary for success (competence, alliance, character).

User Account

All Pages