QUESTION 6 Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes...
QUESTION 6
-
Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each.
What is the "cost" per unit in the context of evaluating the offer from Coyote Corp.?$2
$3
$4
$5
$6
Homework Answers
B. $3
The “cost” per unit in this case is the variable cost that must be covered. Since Micro has excess capacity, the only cost the firm incurs to produce an additional 1,000 widgets is the variable cost.
Fixed cost per unit = $18,000 / 9,000 units = $2 per unit
Variable cost per widget = Average cost - Fixed cost per widget = $5 - $2 = $3 per unit
Add Answer to:
QUESTION 6
Micro Enterprises has the capacity to produce 10,000 widgets a
month, and currently makes...
Sweet Ayla Company currently has the capacity to manufacture 150,000 widgets a year. The widgets normally...
Sweet Ayla Company currently has the capacity to manufacture 150,000 widgets a year. The widgets normally sell for $23.00 each. Sweet Ayla Company has the following costs related to manufacturing and selling 120,000 widgets: Direct materials $300,000 Direct labor $540,000 Variable manufacturing overhead $180,000 Depreciation on equipment only used for the widgets $40,000 Depreciation on factory $100,000 Salary of widget production manager $70,000 Variable selling costs (commissions) $60,000 Fixed selling costs $80,000 Total $1,370,000 Now assume that at the end...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: EB (Click the icon to view the data) If a special sales order is accepted for 2,800 widgets at a price of $36 per unit, fixed costs increase by $9,000, and variable marketing and administrative costs for that order are $3 per unit, how would operating income be...
Just Do It Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per...
Just Do It Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sale price per unit..................................$41 .Variable costs per unit: ..Manufacturing....................................$24 ..Marketing and administrative............$5 Total fixed costs: ..Manufacturing.............................$80,000 .. Marketing and administrative...$23,000 If a special sales order is accepted for 8100 widgets at a price of $39 per unit, and fixed costs increase by $12,000, how would operating...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit S41 Variable costs per unit Manufacturing Marketing and administrative $23 $6 Total fred costs: Manufacturing $75,000 Marketing and administrative $24,000 Ha enorial sales are arranter for 5 winnettarin 37 narunt fiv e remain unchanged and a variable marketing and aiministrativash will O A. Increase...
Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct...
Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 32.50 13.00 19.50 26.00 $ 91.00 An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $84.50 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier? $65.00 $84.50 $91.00...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative $23 $5 Total fixed costs: Manufacturing Marketing and administrative $75,000 $22.000 If a special sales order is accepted for 2.900 widgets at a price of $33 per unit, foxed costs increase by $7.000, and variable...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it curren...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would...
Simmons Marketing (SM) has the capacity to produce 10,000 fax machines per year. SM currently produces...
Simmons Marketing (SM) has the capacity to produce 10,000 fax machines per year. SM currently produces and sells 7,000 units per year. The fax machines normally sell for $100 each. Modem Products has offered to buy 2,000 fax machines from SM for $60 each. Unit-level costs associated with manufacturing each fax machine are $15 for direct labor and $40 for direct materials. Product-level and facility-sustaining costs are $50,000 and $65,000, respectively. 1. What is SM's current profit (net income)? a....
Harcourt Manufacturing (HM) has the capacity to produce 11,200 fax machines per year. HM currently produces...
Harcourt Manufacturing (HM) has the capacity to produce 11,200 fax machines per year. HM currently produces and sells 8,200 units per year. HM currently leases its excess capacity for a rental fee of $55,500. The fax machines normally sell for $220 each. Modem Products has offered to buy 3,200 fax machines from HM for $120 each. Unit-level costs associated with manufacturing the fax machines are $39 each for direct labor and $64 each for direct materials. Product-level and facility-level costs...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: EB (Click the icon to view the data) If a special sales order is accepted for 2,800 widgets at a price of $36 per unit, fixed costs increase by $9,000, and variable marketing and administrative costs for that order are $3 per unit, how would operating income be...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit S41 Variable costs per unit Manufacturing Marketing and administrative $23 $6 Total fred costs: Manufacturing $75,000 Marketing and administrative $24,000 Ha enorial sales are arranter for 5 winnettarin 37 narunt fiv e remain unchanged and a variable marketing and aiministrativash will O A. Increase...
Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 32.50 13.00 19.50 26.00 $ 91.00 An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $84.50 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier? $65.00 $84.50 $91.00...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative $23 $5 Total fixed costs: Manufacturing Marketing and administrative $75,000 $22.000 If a special sales order is accepted for 2.900 widgets at a price of $33 per unit, foxed costs increase by $7.000, and variable...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago