Rooney Company manufactures a personal computer designed for use in schools and markets it under...

50.1K

Verified Solution

Question

Accounting

image
Rooney Company manufactures a personal computer designed for use in schools and markets it under its own label. Rooney 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 $1.640 per unit with no volume discounts. The unit-level costs of the computer's production are $560 for direct materials, $170 for direct labor, and $160 for indirect unit-level manufacturing costs. The total product and facility.level costs incurred by Rooney during the year are expected to be $2,260,000 and $806,000, respectively. Assume that Rooney receives a special order to produce and sell 3,180 computers at $1,300 each Required Calculate the contribution to profit from the special order. Should Rooney accept or reject the special order? Contribution to profit Should Rooney accept or reject the special order? Accept

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