Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. structure furniture, manufactures coffee tables. s

Structure Furniture, manufactures coffee tables. Structure Furniture has a policy of adding a 20% markup...

90.2K

Verified Solution

Question

Accounting

image
Structure Furniture, manufactures coffee tables. Structure Furniture has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month: Output units Machine-hours Direct manufacturing labour-hours 30,000tables 8,000hours 10,000 hours Direct materials per unit Direct manufacturing labour per hour Variable manufacturing overhead costs Fixed manufacturing overhead costs Product and process design costs Marketing and distribution costs $100 $12 $322.500 $1,200,000 $900,000 $1,125,000 a) Structure Furniture is approached by an overseas customer to fulfill a one-time-only special order for 1,000 units. All cost relationships remain the same except for a one-time setup charge of $20,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit or this one-time-only special order? b) What is the Structure Furniture full product cost for long-run pricing purposes

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