Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Bramble Corp. incurred the following costs for 58000 units: Variable costs$348000 Fixed costs392000 Bramble has received a special order from a foreign company for 2500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $3000 for shipping. If Bramble wants to earn $5000 on the order, what should the unit price be

Sagot :

anthougo

Answer:

Bramble Corp.

If Bramble wants to earn $5000 on the order, the unit price should be:

$9.20.

Explanation:

a) Data and Calculations:

                                 Normal     Per Unit          Special

                             Production     Cost              Order

Production capacity = 58,000 units              2,500 units

Variable costs     $348,000      $6.00           $15,000 ($6 * 2,500)

Fixed costs           392,000       $6.76            0

Additional shipping                                         $3,000

Total costs         $740,000      $12.76           $18,000

Profit on special order                                      5,000

Total Sales revenue                                     $23,000

Unit price for special order ($23,000/2,500) $9.20

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.