7, n u:- MacDonald Corporation's Olympia plant produces a module used in automobile manufacturing. The...
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7, n u:- MacDonald Corporation's Olympia plant produces a module used in automobile manufacturing. The company's practical capacity l5 3,500 modules per week. The selling price lS $860 per module. Production this quarter is 2,300 modules per week, and all ot the modules produced are sold each week, Demand is expected to remain steady Total costs of production this week at the level of 2300 modules were $280000 of xed costs plus $1 610,000 of variable costs Suppose that a new customer's supplier has an emergency need for 1600 modules to be delivered next week and that the plant cannot schedule overtime production Consequently. MacDonald would have to give up some of its current sales to fill the new order Total selling and administrative costs would not change if MacDonald accepts the order Requirement What is the minimum (oor) price that MacDonald should charge for the new order? First select the labels then calcula e the minimum (floor) price that MacDonald should charge for the new order, (Round your answers to two deCImal places) Floor price per unit 9 Points: MacDonald Corporation's Olympia plant produces a module used in automobile manufacturing. The company's practical capacity is 3,500 modules per week. The selling price is $860 per module. Production this quarter is 2,300 modules per week, and all of the modules produced are sold each week. Demand is expected to remain steady Total costs of production this week at the level of 2.300 modules were $250000 of xed costs plus $1.610,000 of variable costs. Suppose that a new customer's supplier has an emergency need for 1.600 modules to be delivered next week and that the plant cannot schedule overtime production Consequently. MacDonald would have to give up some of its current sales to fill the new order Total selling and administrative costs would not change if MacDonald accepts the order Requirement What is the minimum (floor) price that MacDonald should charge for the new order? Firstselect the labels then calculate the minimum (oor) price that MacDonald should charge forthe new order. (Round youranswers to two deCImal places.) lvl Contribution margin per unit Opportunity cost per unit Sales price per unit Variable cost per unit
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