The writer is very fast, professional and responded to the review request fast also. Thank you.
Surly company makes small boats. The company produces and sells 5,500 boats per year at a selling price of $160 per boat. Surly company has excess capacity and is trying to get special orders. A new retailer wants to purchase 1000 boats for 125 per boat. Surly company is going to decline the special order because it costs $130 to make a single boat as seen below.
Direct material $50
Direct manufacturing $55 per unit
Variable manufacturing overhead $10 per unit
Fixed manufacturing Overhead $15 per unit
Total $130 per unit
Required
A) Should surly company reject the special order from the new retailer? Why?
B) How much will surly’s net income increase with the special offer?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more