Calculating manufacturing cost per unit

Assignment Help Managerial Accounting

Reference no: EM1350579

A Trucks Parts Manufacturer is approached by an European customer to fulfill a special one-time order for a product similar to one offered to domestic customers. Truck Parts Manufacturing has excess capactity. The following per unit data applies to sales of regular (domestic) customers:

Direct materials $40
Direct labor 20
Variable manufacturing support 50
Fixed manufacturing support 60
Total manufacturing costs $170
Markup (50%) 85
Targeted selling price $255

1) What is full manufacturing cost per unit -

$110, 170, 255, or 85

2) What is the contribution per unit -

$85, 110, 145, or 255

3) Which costs are relevant for making the decision regarding this special order -

Full costs, Incremental costs, Targeted selling price, or It varies

4) For Truck Parts Manufacturing, what is the minimum acceptable price of the special order -

$110, 145, 170, or 255

5) For this special order, Truck Parts Manufacturing should consider -

Any price greater than $170, Any price less than $255, Any price less than $ 255 but greater than $170, or A price of $150 per unit

Reference no: EM1350579

Questions Cloud

Prepare a proposal for customer needs : Determine the effectiveness of this proposal, based on information you have studied - Prepare a Proposal for Customer Needs

Explain what standard determines whether these parties : Explain What standard determines whether these parties have a contract

What time interval should the gyroscope be operated : Two weights are connected by a very light flexible cord that passes over a 30 frictionless pulley of radius 0.100. The pulley is a solid uniform disk and is supported by a hook connected to the ceiling. One weight is 75N and the other is 125 N.

Cognitive and social development : Parenting styles can provide children with the foundation they need to succeed academically and socially or stifle their cognitive and social development; which can lead to emotional or psychological problems.

Calculating manufacturing cost per unit : A Trucks Parts Manufacturer is approached by an European customer to fulfill a special one-time order for a product similar to one offered to domestic customers. Truck Parts Manufacturing has excess capactity. The following per unit data applies t..

State turing machine m that calculates function : State a Turing Machine M that computes the function f: {a, b}* → N, where: f(x) = the unary encoding of max(#a(x), #b(x)).

Organizational behavior and implications for business : Prepare a paper on a specific aspect of or topic relating to Organizational Behavior and its implications for business. Apply your findings to a specific industry or type of business.

Determine the future value : Determine the future value of $1,000, placed in a saving account for four years if the account pays 8 percent, compounded quarterly?

Explain how would you prioritize if you were given level : As the Department had of your chosen occupation, Explain how would you prioritize if you were given level budget requirements?

User Account

All Pages