Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. circuit masters incorporated (cmi) is presently op

Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 118,000 units...

90.2K

Verified Solution

Question

Accounting

imageimage Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing 118,000 units of a patented electronic component. The cost structure of the component is as follows: An Italian firm has offered to purchase 22,000 of the components at a price of $34.00 per unit, FOB CMI's plant. The normal selling price is $38.00 per component. This special order will not affect any of CMl's "normal" business. Management calculated that the cost per component is $30.90, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit. b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. Calculate the fixed overhead per unit? Note: Round your answer to 2 decimal places. Complete this question by entering your answers in the tabs below. b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students