Examlex

Solved

Time Unlimited Makes Grandfather Clock Kits That It Sells to Hobbyists

question 2

Essay

Time Unlimited makes grandfather clock kits that it sells to hobbyists who then assemble and finish the clocks.The company has the capacity to make 5,000 of the kits,and its current volume is 3,000 kits.The costs of a clock kit are: $300 for unit-level materials,$200 for unit-level labor,and $150 for an allocation of facility-level overhead.The normal selling price is $950.The Clock Builder has received a special order for 600 clock kits at a price of $600 each.
Required:
Should The Clock Builder accept the special order? Support your answer with appropriate computations.


Definitions:

Trichromatic Theory

A theory of color perception that proposes three mechanisms in the visual system, each sensitive to a certain range of wavelengths; their interaction is assumed to produce all the different experiences of hue.

Visual System

The part of the central nervous system that allows organisms to process visual detail, including the eyes, optic nerves, and brain regions involved in visual perception.

Wavelengths

The distance between consecutive crests of a wave, typically used in the context of electromagnetic and sound waves.

Auditory Receptors

are sensory cells located in the inner ear that convert sound waves into electrical signals, which are then interpreted by the brain as sound.

Related Questions