ACCT 505 Week 7 Course Project 2 Capital Budgeting
Decision( New)
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modifications, for $ 40.10 each. The normal selling price of this product is $ 48.00 each. The normal unit product cost of product M97 is computed as follows. Direct Materials $ 18.50 Direct Labor $ 1.20 Variable manufacturing overhead $ 8.40 Fixed manufacturing overhead $ 3.90 Unit product cost $ 32.00 Direct labor is a variable cost. The special order would have no effect on the company ' s total fixed manufacturing overhead costs. The customer would like some modifications made to product M97 that would increase the variable costs by $ 5.70 per unit and that would require a one-time investment of $ 31,000 in special molds that would have no salvage value. This special order would have no effect on the company ' s other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company ' s total net operating income of accepting the special order. Show your work! ================================================
ACCT 505 Week 7 Course Project 2 Capital Budgeting
Decision( New)
For more course tutorials visit www. uophelp. com
ACCT 505 Course Project 2 Hampton Company Capital Budgeting Decision Hampton Company: The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the cans instead of purchasing them. The equipment needed would cost $ 1,000,000, with a disposal value of $ 200,000, and would be able to produce 27,500,000 cans over the life of the machinery. The production