CoursHeroTranscribedText: Alpena Corporation manufactures smartphone and tablet cases. The following Is the cost of each...
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CoursHeroTranscribedText: Alpena Corporation manufactures smartphone and tablet cases. The following Is the cost of each unit. Materials 5 8.15 Labor 3.?5 Variable overhead 1.?5 Fixed overhead [$1,515,000 per year; 150,000 units per year] 10.10 Total 5 23.?5 Decatur Devices has approached Alpena with an offer to buy 3.000 cases at a price of $19.40 each for Its new specialty tablet designed for health care workers. The regular price of an Aipena case is $34.50. Alpena has the total capacity to produce 180.000 units without increasing its xed overhead. Decatur Devices requires that each case use its branding, which requires a more expensive embossing step. This will result in an additional $3.65 per case labor cost. The materiai cost of ofthe Decatur case will be the same as for the current models. The Decatur order will also require a One-time rental of embossing equipment for $3.381. Required: a. Prepare a schedule to show the Impact oflling the Decatur Devices order on Alpena's prots for the year. b. Would you recommend that Alpena accept the order? c. Considering only prot, determine the minimum quantity of cases in the special order that would make it protable. assuming capacity is available. Complete this question by entering your answers In the tabs below. . Required A Required 5 [Required C I Prepare a schedule to show the impact of lling the Decatur Devices order on Alpena's prots for the year. (Enter your answers in thousands rounded to 1 decimal place. {l.e., 5.400.400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Selec["none" if there is no effect.) Less variable costs: Variable overhead l
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