Demo-case-4 - Demonstration Case 1 Nationwide Windows can...

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Demonstration Case 1 Nationwide Windows can produce 10,000 windows per year. Its normal year of operations involves the following: Sales (8,000 units @ $220) $1,760,000 Manufacturing cost Variable per unit 150 Fixed 260,000 Selling and administrative cost Variable (commission) per unit on sales 12 Fixed 60,000 During the year, Nationwide is approached by a contractor to buy 1,500 windows for $165 each. The variable sales commission is set to be a flat fee of $12,000 for the special order. The fixed costs are not affected by the decision. Required: 1. Should Nationwide Windows accept the special order? Explain. 2. If the contractor needs instead a total of 2,500 windows and still pays $165 each (all other information remains the same), should Nationwide accept the special order? Explain. ====================== Demonstration Case 2 Cube Manufacturing usually produces its own parts for assembly. The following monthly data are available for one of the parts, Part A31: Manufacturing costs Variable per unit
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Demo-case-4 - Demonstration Case 1 Nationwide Windows can...

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