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e Secure https/'s1.lite msu.edu/res/msu/jacobs/HomeworkProblems/specialordesp12 rkproblems special 12 problem?sy uploaded de 2fm su%2f8q 173957425505965m 11%2fdefault%2esequence eo, 140 msu%ac ason Louselle Gantos [Student -section: 001) Main Menu ACC230, Fall 2017 Survey of Accounting Concepts 2 Messages Courses Help Logout Grades Course Contents PROBLEM 5 [SPECIAL ORDER DECISION] This is a special order problem that also requires that you use the high low method to estimate some cost function parameters. For guidance Module 1 and the high-low study problem solutions. As with almost all of the . C) Timer Notes Evaluate b. Feedback Print ,nro , you may want to review the high-low method lectures in analyses that we have done, determining variable and fixed costs, and knowing what to do with them, is critical Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufactu rer to purchase 29,500 units of a power steering system component for $190 per unit Peter Wu, vice-president of sales, notes that although there will be an additional $2.50 shipping cost for each component, he thinks that accepting the order will get the company's "foot in the door" of an expanding international market. Huang's production and cost information for the last two years for the component are as follows: 207,000 units 235,000 units Direct material costs Direct labor costs Overhead costs Selling and administrative costs $18,112,500 6,003,000 21,902,500 9,463,000 $33,481,000 5268.02 20,562,500 6,315,000 23,512,500 9,715,000 $60,605,000 $257.89 Total costs per unit T.J. Chan, vice-president of engineering, feels that any new market should first shaw its profitability and that the $190 per unit offer is not o component. She also points out that there will be additional setup costs of $220,000 and that Huang will have to lease some special ly below the regular $27D seling price, but it's below the unit cost of the equipment for $260,000. Required 1. using the high-low method to determine cost behavior, what would the expected profit be on the special order (use a n egative sgn for a loss)? Submit Answer Tries 0/8 Lxport NEW I did something wrong. Benjamin Edward Joung Renly (Thu Oct 26 09:09:27 pm 2017 (EDT) To build my cost-equation, I used the High-Low method to learm the variable cost per unit (60.780.000-55.000.0001/1234.000-200.000)- O Type here to search

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