Question

del 221 #1. (1 mark) ABC Manufacturing produces a product with the following cost information based on full capacity of 500,000 units: - Direct Materials - Direct Labour $5/unit - Manufacturing Overhead $10/unit (70% of which is fixed) A one-time special order has come in for 50,000 units. This one time order will not impact current product runs or cause production to exceed full capacity. What is the lowest sales price per met that ABC Manufacturing can accept and still fum a profit? ufacturing, mathie wat 12.(7 Marts) XYZ manufacturing makes dishwashers. One of the components of the dishwasher is the valve that controls the wa bar comung into the machine. Thevestimate that they W ed 213000 of these valves in the coming are ad evenly over the war. They can order the once a month or they can order all 215.000 at the beginning of the war. If the LOT of the the beginning of the war they can save 5% of the price of the valve. Each costs and each order costs $200 to place. The cavest idle cash ata rate of grade being Should XYZpurchase all the units up front ostala they onder monthiye (show both had to spreife opportunity for t h but wanted to keepcash ham ang cows up, would that there the m ounta) and why For Manufacture to Party manalue of Front ty to buy the part of the Parque 15 of direct l 11 to

Answer 1

It is given in the question that the special order will not impact
current product runs or cause production to exceed full capacity
therefore, fixed cost is irrelevant .
Direct Materials	7
Direct Labour	5
Variable Manufacturing Overhead (10*30%)	3
Total Variable Cost	15
Therefore, any price above $15 per unit can be fixed as sales price and company can still
turn a profit.

Note;

As per rule I hav answered the first question