Assignment Detail

Tutors

How much better or worse off is circus toys

    Assignment Instructions

    Assignment ID: FG133135150

    Question – Circus Toys produces a plastic three-ring circus set. The set sells for $102. The capacity of the plant is 20,000 sets per year. Production costs are as follows for 20,000 sets:

    Per unit

    Direct materials

    $ 10.00

    Direct labor

    15.00

    Variable overhead

    20.00

    Variable Selling costs

    5.00

    Fixed overhead

    40.00

    Total Cost

    90.00

    A Canadian store, which had previously not purchased from Circus Toys, has approached the marketing manager about buying 6,000 sets for $88/set. No selling expenses would be incurred in this offer, but the Canadian firm wants its store name put on the package, which means an additional $2.50 cost per unit to Circus Toys. Because the company is currently selling 19,000 sets, acceptance of this special order would require it to reject some of its current business.

    Required – How much better or worse off is Circus Toys if they accept the special order? Show computations.

    Need fresh solution to this Assignment without plagiarism?? Get Quote Now

    Expert Answer

    Asked by: Anonymous
    Plagiarism Checked
    Answer Rating:
    4.6/5

    Plagiarism free Answer files are strictly restricted for download to the student who originally posted this question.

    Related Assignments

    //
    Our customer support team is here to answer your questions. You can send Assignments directly to support team.
    👋 Hi, how can I help?