Miko Company manufactures a personal computer designed for use in schools and markets it under...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Miko Company manufactures a personal computer designed for use in schools and markets it under its own label. Miko has the capacity to produce 33,000 units a year but is currently producing and selling only 19,000 units a year. The computer’s normal selling price is $1,650 per unit with no volume discounts. The unit-level costs of the computer’s production are $490 for direct materials, $200 for direct labor, and $180 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Miko during the year are expected to be $2,180,000 and $801,000, respectively. Assume that Miko receives a special order to produce and sell 3,200 computers at $1,210 each.
Required:
a.
Calculate the contribution to profit from the special order.
b.Should Miko accept or reject the special order?
Accept
Reject
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.