B Compare the total perunit cost of manufacturing standard cases and deluxe cases. Record your answers in the following table: Round perunit cost to two decimal places
tableStandard,DeluxeTotal manufacturing costs,,Units produced and sold,,Costs per unit,,
C On a perunit basis, what is the profitability per unit for each of the two product lines? Record your answers in the following table. Which product line appears to be most profitable? Round interim and final answers to two decimal places
Question Links, Incorporated produces golf gloves. The gloves sell for $ each. Variable costs are $ and fixed costs are $ each. An Australian company has offered to pay $ each for gloves. The manufacturing capacity will not be affected by this special order and it will not affect regular sales. Fixed assets will not change but variable selling costs will increase by $ a glove due to delivery costs.
Required:
Answer the following questions:
A What is the relevant cost per unit on this special order?
B How will company profits be affected if Links accepts the Australian company's offer?
C Should the company accept this special order? Why?