90.2K

Verified Solution

Link Copied!

Gallerani Corporation has received a request for a special order of 5,700 units of product A90 for $2790 each. Product A90's unit product cost is $2735, determined as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 3.95 8.35 .45 8.5e 27.35 like modifications made to produc that would have no salvage value. This special order would have no effect on the special order. The annual financial advantage (disadvantage) for the company direct labor is a variable cost. The special order would have no efflect on the company's total fixed manufacturing overhead costs. The customer would t A30 that would increase the variable costs by $4 20 per unit and that would require an investment of $21000 in special molds companys other sales. The company has ample spare capacity for producing the as a result of accepting this special order should be The Wester Corporation prodaces three products with the following costs and selling prikes: Selling price per unit Variable cost per unit Fixed cost per unit Direct labor hours per unit e.4 .1 .7 Machine hours per unit s 21 $ 12 $ 32 s 11 s 7 S 18 0.2 0.5 0.2 The company has insufficlent capacity to fulra all of the demand for these three products If direct labor hours are the constraint, then the ranking of the prodlucts froem the most profitable to the least proftabie use of the constrained resource s A, B, C B A, C O CAB

Answer & Explanation Solved by verified expert

See Answer