The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: E (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit marketing cost per unit. Read the requirements of Stronglast plus half of the Requ KAssume that O Requirements - X X Jucing the 3,0 O Data Table - X Deter 1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Chesapeake offer? Show your calculations. 3. Suppose Panther had been working at less than full capacity, producing 9,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions. (Ignore the previous $41 selling price.) Direct materials 9 Direct manufacturing labor Requ Strong hther so that her $38 per u verlast and 3,000 units of lations. 12 Manufacturing overhead Panth manu $ 24 the following table for hasing 3,000 Total manufacturing cost Manufacturing overhead cost per unit is based on variable cost per unit of $7 and fixed costs of $62,500 (at full capacity of 12,500 units). Marketing cost per unit, all variable, is $2, and the selling price is $48. Sellin Print Done Print Done Total Contribution margin per unit Contribution margin from 201 10 selling 3,000 units 60000 30000 90000 choose from any list or enter any number in the input fields and then click Check Answer.
The Panther Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: E (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther $41 for a unit marketing cost per unit. Read the requirements of Stronglast plus half of the Requ KAssume that O Requirements - X X Jucing the 3,0 O Data Table - X Deter 1. What is the opportunity cost to Panther of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 9,500 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Chesapeake offer? Show your calculations. 3. Suppose Panther had been working at less than full capacity, producing 9,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions. (Ignore the previous $41 selling price.) Direct materials 9 Direct manufacturing labor Requ Strong hther so that her $38 per u verlast and 3,000 units of lations. 12 Manufacturing overhead Panth manu $ 24 the following table for hasing 3,000 Total manufacturing cost Manufacturing overhead cost per unit is based on variable cost per unit of $7 and fixed costs of $62,500 (at full capacity of 12,500 units). Marketing cost per unit, all variable, is $2, and the selling price is $48. Sellin Print Done Print Done Total Contribution margin per unit Contribution margin from 201 10 selling 3,000 units 60000 30000 90000 choose from any list or enter any number in the input fields and then click Check Answer.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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