Whispering World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting...
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Whispering World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The perunit costs to manufacture and sell this rubberbandbased product are as follows: DM $ Dl Variable MOH FixedMOH Variable SG&A Fixed SG&A $ Whispering World normally sells its CardioBands for $ each; Jerry's Gym wants to purchase of these workout products to incorporate in two of its cardio classes, but it wants a special price of $ for the complete order. Whispering World has enough production capacity to take on this special order. a Should Whispering World accept this special order, assuming all relevant costs will be incurred for the order? Yes No How much profit or loss would this deal generate for Whispering World? This deal will generate Profit or loss of $ b If Whispering World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order? Minimum selling price $ per unit
Whispering World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The perunit costs to manufacture and sell this rubberbandbased product are as follows:
DM $
Dl
Variable MOH
FixedMOH
Variable SG&A
Fixed SG&A
$
Whispering World normally sells its CardioBands for $ each; Jerry's Gym wants to purchase of these workout products to incorporate in two of its cardio classes, but it wants a special price of $ for the complete order. Whispering World has enough production capacity to take on this special order.
a Should Whispering World accept this special order, assuming all relevant costs will be incurred for the order? Yes No
How much profit or loss would this deal generate for Whispering World?
This deal will generate Profit or loss of $
b If Whispering World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order?
Minimum selling price $ per unit
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