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