Hw.97. Windsor World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too mucheffort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows.DMDLVariable-MOHSFixed-MOHFixed SG&ATotal$1.05(a)Variable SG&A 0.300.850.800.25(b)1.60Windsor World normally sells its CardioBands for $11 each. Jerry's Gym wants to purchase 50 of these workout products toincorporate in two of its cardio classes, but it wants a special price of $200 for the complete order. Windsor World has enoughproduction capacity to take on this special order.Yes V$4.85Your answer is correct.Should Windsor World accept this special order, assuming all relevant costs will be incurred for the order?How much profit or loss would this deal generate for Windsor World? (Round answer to 2 decimal places, e.g. 15.25.)This deal will generate profitprofit of $80.00If Windsor World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order?(Round answer to 2 decimal places, e.g. 15.25.)Minimum selling price $per unit

For pricing the special orders, we must evaluate the behavior of fixed and variable costs. Fixed…

Answered: Windsor World manufactures a workout…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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