Jackson has received a request for a special order of 9,000 units of product "Michael"...
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Accounting
Jackson has received a request for a special order of 9,000 units of product "Michael" for $46.12 each. The normal selling price of this product is $51.10 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product "Michael" is computed as follows: Direct materials $17.79 Dirct labor $6.18 Variable manufacturing overhead $3.62 Fixed manufacturing overhead $6.68 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product "Michael"that would increase the variable costs by $6.00 per unit and that would require a one-time investment of $46344 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Determine the effect on total net operating income of accepting the special order. Round only your final answer to the nearest dollar and enter a loss as negative, a gain as positive. Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $13 $8 Demand for "W" is 239 units and "H" is 302 units If Costner only 179 labor hours available, how many units of "H" should be manufactured? Round your final answer to the nearest whole unit. Part "Celine" is used in one of Dion's products. The company's Accounting Department reports the following costs of producing the 10,000 units of the part that are needed every year. An outside supplier has offered to make the part and sell it to the company for $11.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $2,000 of these allocated general overhead costs would be avoided. What factor(s) should Dion ignore in making this decision? Why? Give three measures that are generally relevant in decision making. Part "Mendes" is used in one of Shawn's products. The company's Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year. Direct Materials $4.19 Direct labor $1.85 Variable overhead $2.28 Supervisor's salary $3.79 Depreciation of special equipment $2.32 Allocated general overhead $1.85 An outside supplier has offered to make the part and sell it to the company for $14.19 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $5510 of these allocated general overhead costs would be avoided. What would be the impact on total net income if Shawn accepted the supplier's offer? Round only your final answer to the nearest dollar. Do not round intermediate calcuations. Show a negative for a loss, positive for a gain
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