Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate special order decisions Rooney...
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Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate special order decisions Rooney Company manufactures a personal computer designed for use in schools and markets it under its own label Rooney has the capacity to produce 39,000 units a year but is currently producing and selling only 13,000 units a year. The computer's normal selling price is $1740 per unit with no volume discounts. The unit level costs of the computer's production are $490 for direct materials. $230 for direct labor, and $170 for indirect unit level manufacturing costs. The total product and facility level costs incurred by Rooney during the year are expected to be $2,180,000 and $810,000, respectively. Assume that Rooney receives a special order to produce and sell 3,120 computers at $1.280 each Required Calculate the contribution to profit from the special order. Should Rooney accept or reject the special order? Contribution to profit Should Rooney accept or rojot the special order
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