Q 53

Use the information below to answer the following question(s).Northwoods manufactures rustic furniture.The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs.The company has surplus capacity available.It is Northwoods' policy to add a 50% markup to full costs.
-Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables.What is the lowest price Northwoods should bid on this special order?
A)$6,300
B)$7,200
C)$10,800
D)$13,500
E)$9,000

Q 55

Answer the following question(s)using the information below.Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.Welch Manufacturing has excess capacity.The following per unit data apply for sales to regular customers:
-What is the contribution margin per unit?
A)$85
B)$110
C)$145
D)$160
E)$195

Q 56

Answer the following question(s)using the information below.Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.Welch Manufacturing has excess capacity.The following per unit data apply for sales to regular customers:
-For Welch Manufacturing, what is the minimum acceptable price of this special order?
A)$110
B)$140
C)$170
D)$240
E)$255