Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. landor appliance corporation makes and sells elect

Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $48. The following...

60.1K

Verified Solution

Question

Accounting

Landor Appliance Corporation makes and sells electric fans. Eachfan regularly sells for $48. The following cost data per fan isbased on a full capacity of 151,000 fans produced each period.

Direct materials$7
Direct labor$9
Manufacturing overhead (50% variable and 50% unavoidablefixed)$6

A special order has been received by Landor for a sale of 25,000fans to an overseas customer. The only selling costs that would beincurred on this order would be $6 per fan for shipping. Landor isnow selling 126,000 fans through regular channels each period.Assume that direct labor is an avoidable cost in this decision.What should Landor use as a minimum selling price per fan innegotiating a price for this special order?

Answer & Explanation Solved by verified expert
3.8 Ratings (358 Votes)
Answer In the given question we are required to compute the minimum selling price per fan Landor should use in negotiating a price for this special order Hence the minimum price of a product to be equal to thesum of the additional costs that are incurred as a result of acceptance of an order decision ie which can be avoided    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

For carbon-14, calculate the mass defect and the binding energy. Please explain to me where you...

Chemistry
Q

Analyse the growth pattern in the state that you live in. What are the development parameters...

Economics
Q

Show that Christoffel symbols do not transform like a tensor. And, how does the determinant of...

Advance Math
Q

show that if I is uncountable,then 2I is not metrizable. hint: Suppose I as index set.

Advance Math
Q

Oxygen and carbon dioxide gas can pass easily through the cell membrane by simple diffusion...

Biology
Q

alternate dark and bright bands 47 In an absorption an absorption spectrum dark lir corresponds...

Physics
Q

6 Consider the following functions a A r r b f x 3 c g...

Calculus
Q

Short Answer Question 1 - Regulatory Framework (Answer length - approximately...

Accounting
Q

24. Which of the following is false? Both are true Both are false The direct...

Accounting
Q

Schedule of Cash Payments for a Service Company Oakwood Financial Inc. was organized on February...

Accounting
Q

Regarding Capital Gain and Debt Cancellation Income recognition when taxpayers transfer Bitcoin (Notice 2014-21, 2014-16...

Accounting
Q

Given the attached data, prepare a single step income statement.

Accounting