Home » Consider the following information, prepared based on a monthly capacity of 90,000 units

Consider the following information, prepared based on a monthly capacity of 90,000 units

Question #1Consider the following information, prepared based on a monthly capacity of 90,000 units:.9px;=”” 12px=””>CategoryCost per UnitVariable manufacturing costs$27Fixed manufacturing costs$6Variable selling costs$5Fixed selling costs$3Capacity cannot be added in the month and the firm currently sells the product for $48 per unit.Consider each of these scenarios independent of each other.a) The company is currently producing 81,000 units per month. A potential customer has contacted the firm and offered to purchase 6,000 units this month only. The customer is willing to pay $40 per unit. Since the potential customer approached the firm, there will be no variable selling costs incurred. Should the company accept the special order? Why or why not? Be specific.b) Assume the same facts as in part a, except that the company is producing 90,000 units per month. Should the company accept the special order? Why or why not? Be specific.c) List and describe other factors (not those addressed in parts a and b) that should be taken into consideration when deciding whether to accept a special order? Be specific in your responses.Question #2Consider the following information, prepared based on monthly production and sales of 100,000 units:.9px;=”” 12px=””>CategoryCost per UnitVariable manufacturing costs$12.00Variable marketing costs$6.00The firm has total fixed costs of $1,000,000 and currently sells the product for $55 per unit.Assume the company is producing and selling 100,000 units per month. It is considering an arrangement where an outside manufacturer would produce and ship the product directly to customers. Under this arrangement, variable marketing costs would decrease 70% per unit and $250,000 in fixed costs would be avoided. What is the maximum amount per unit the company would be willing to pay to the outside manufacturer?List and describe other factors that should be taken into consideration when deciding whether to accept this offer. Be specific in your responses.Question #3A consulting company performs a “basic” market analysis for a client. It incurs costs of $75,000 in performing the analysis and plans to sell the report to the client for $125,000. After reviewing the initial report, the client asks the firm if it is willing to do a more extensive report. The client offers to pay $200,000 for a more extensive report. If the more extensive report is done, the client will NOT pay the $125,000. If the consulting firm estimates it will require $80,000 in additional expenses to complete the more extensive report, should it agree to do the more extensive report? Why or Why not? Be specific in your response.Question #4Assume an engineering company provides services for three types of clients. Each service requires a different amount of a specific form of specialized labor that is in limited supply. If the company is limited to 25,000 hours of this specialized labor, how many clients of each type should it accept in order to maximize operating income?.9px;=”” 12px=””>Client TypeABCRevenue per client$1,800$2,500$3,800Variable costs per client$600$1,000$1,900Specialized labor hours required per client101520Maximum clients available900600500

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Live Chat+1 763 309 4299EmailWhatsApp

We Can Handle your Online Class from as low as$100 per week