Total relevant costs of accepting the special order

Assignment Help Other Management

Reference no: EM1321149

A local skating rink charges each person $5 to skate and another $3 for each skate rental. The rink has determined that on a daily basis, when 100 tickets are sold, the cost per skater are $.50 for variable costs and $1 for fixed overhead costs. The rink has the capacity for up to 175 skaters per day. A local kid's day camp has asked the rink to allow up to 35 children to skate for $2.50 each on July 15. This price would include the cost of a skate rental. During July, the rink averages 100 skaters per day.

A) List two qualitative factors that should be considered by the rink before accepting the special order.

B) What are the total relevant costs of accepting the special order?

C) From a quantitative basis, should they accept the special order? By what amount will the rink's net income increase or decrease if they accept the special order?

Reference no: EM1321149

Questions Cloud

Find the sample mean and sample standard deviation : find that the sample mean and sample standard deviation

Employment discrimination in european union : Investigate any laws that prohibit employment discrimination in European Union, Australia, Japan & China. Note similarities and differences from American laws. What values or assumptions do the laws of these countries make about the employment rel..

Interpret the decision regarding the null hypothesis : At the .01 significance level can we conclude the mean age is more than 8.4 years for the cars of university students? Compute the value of the test statistic.

Variety of ergonomic household : Ergo Products manufactures a variety of ergonomic household toold including a cordless drill. The cordless drill comes with a battery recharger. Currently, the company manufactures its own recharger for the drill with the following unit costs:

Total relevant costs of accepting the special order : What are the total relevant costs of accepting the special order? From a quantitative basis, should they accept the special order? By what amount will the rink's net income increase or decrease if they accept the special order?

Hypothesis test for population mean : Hypothesis test for population mean

Message of the commercial : A man looks at the camera and says in a sympathetic Swedish accent, "Many of you feel bad for this lamp," and then, after a well-timed pause, "That's because you're crazy." What's the message of the commercial?

Hypothesis test for single mean : Hypothesis test for single mean

Calculate the value of the test statistic of the mean age : At the .01 significance level can we conclude the mean age is more than 8.4 years for the cars of university students? Compute the value of the test statistic.

User Account

All Pages