Minor Electric has received a special one-time order for 1,100 light fixtures (units) at $9 per unit. Minor currently produces and sells 8,500 units at $11.00 each. This level represents 85% of its capacity. Production costs for these units are $8.50 per unit, which includes $6.50 variable cost and $2.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order

Minor Electric

The company should accept the special order.  It makes a unit contribution of $1.41, which amounts to $1,551 in total.

Explanation:

a) Data and Calculations:

Special order received for light fixtures = 1,100 units

Price of special order = $9 per unit

Production and sales units = 8,500 = 85% capacity

Total capacity = 10,000 units (8,500/0.85)

Selling price at production and sales units = $11.00 each

Production costs per unit = $8.50

Variable cost per unit = $6.50

Fixed cost per unit = $2

Cost of new machine required for special order = $1,200

Special order costs:

Variable cost per unit = $7,150 ($6.50 * 1,100)

Cost of new machine =   1,200

Total relevant costs =   $8,350

Unit cost = $7.59 ($8,350/1,100)

Selling price = $9.00

Contribution per unit = $1.41

answer; i believe that the correct answer is (strain);

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number