Business, 11.05.2021 17:50 gracie6313

Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $36. The following cost data per fan is based on a full capacity of 138,000 fans produced each period. Direct materials $ 9
Direct labor $ 8
Manufacturing overhead (25% variable and 75% unavoidable fixed) $ 8
A special order has been received by Landor for a sale of 15,000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $3 per fan for shipping. Landor is now selling 123,000 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 in negotiating a price for this special order?
a. $23 per fan
b. $22 per fan
c. $19 per fan
d. $25 per fan

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 10:20

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

Answers: 3

Answer

Business, 22.06.2019 18:50

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)

Answers: 3

Answer

Business, 22.06.2019 22:30

Luggage world buys briefcases with an invoice date of september 28. the terms of sale are 2/10 eom. what is the net date for this invoice

Answers: 1

Answer

Business, 23.06.2019 00:30

Greentel, a telecom giant, has been using the service of orpheus inc. for training its employees. according to a deal signed by the two companies, orpheus inc. is not only responsible for training greentel's employees but also for providing comprehensive administrative services to the telecom giant. in this instance, greentel engages in

Answers: 1

Answer

You know the right answer?

Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $36. The fo...

Questions