Reference no: EM13486946
Mission Electronics manufactures and sells basic DVD players for sale under various generic store brand names. The cost of one of their models follows:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$18.00
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00
Variable overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00
Fixed overhead ($2,700,000 per year; 450,000 units per year) . . . 6.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$41.00
Pacific Cash & Carry, a chain of low-price electronic sales and rental outlets, has asked Mission to supply them with 30,000 players for a special promotion Pacific is planning. Pacific has offered to pay Mission a unit price of $42 per DVD player. The regular selling price is $60. The special order would require some modification to the basic model. These modifications would add $4.00 per unit in material cost, $1.50 per unit in labor cost, and $0.50 in variable overhead cost. Although Mission has the capacity to produce the 30,000 units without affecting its regular production of 450,000 units, a one-time rental of special testing equipment to meet Pacific's requirements would be needed. The equipment rental would be $45,000 and would allow Mission to test up to 50,000 units.
Required
a. Prepare a schedule to show the impact of filling the Pacific order on Mission's profits for the year.
b. Would you recommend that Mission accept the order?
c. Considering only profit, what is the minimum quantity of DVD players in the special order that would make it profitable?
|
Determine the angular speed of the device
: A device consisting of four heavy balls connected by low mass rods is free to rotate about an axle. It is initially not spinning. what is the angular speed of the device
|
|
Examine and discuss the characteristics of npv
: Examine and discuss the characteristics of NPV and the role that this method plays in capital investment decision making. In addition, discuss the advantages of using this method instead of the other evaluation methods examined this week. should b..
|
|
Determine the heat conduction rate along the rod
: One end of a 33cm long aluminum rod with a diameter of 2.8 is kept at 420C and the other is immersed in the water at 24C
|
|
What are the main discrepancies between the bids
: Calculate the total bid if you base your calculations on the September 15, 2005, invoice assuming a cost plus 15% government contract and what are the main discrepancies between the bids you calculated in #1 and #2?
|
|
Show the impact of filling the pacific order
: Prepare a schedule to show the impact of filling the Pacific order on Mission's profits for the year and would you recommend that Mission accept the order and what is the minimum quantity of DVD players in the special order that would make it profita..
|
|
Compute the heat lost or gained by the system
: A cylinder contains 250 g of Helium at 200 K. The external pressure is constant at 1 atm. There is an increase in temperature of 56 K. Calculate the heat lost or gained by the system in response to this change in the external temperature.
|
|
Evaluate the heat lost or gained by the system
: There is an increase in temperature of 56 K. Calculate the heat lost or gained by the system in response to this change in the external temperature.
|
|
Calculate the conversion cost rates for department
: Calculate the conversion cost rates for department and calculate the budgeted cost of goods manufactured for vitamin A, vitamin B, and the multivitamin for the month of July.
|
|
Compute the change in enthalpy of the reaction
: Calculate the change in enthalpy of this reaction. Specific heat of the solution = 4.184 J/(g oC) State your answer in kJ with 3 significant figures. Don't forget to enter the unit behind the numerical answer. The molecular weight of KOH is 56.2 g..
|