Longball Company Manufactures Basketball Backboards Required:
A

question 110

Essay

Longball Company manufactures basketball backboards.The following information pertains to the company's normal operations per month:
$$\begin{array} { l r } \text { Output units } & 15,000 \text { boards } \\\text { Machine-hours } & 4,000 \text { hours } \\\text { Direct manufacturing labor-hours } & 5,000 \text { hours } \\& \\\text { Direct manufacturing labor per hour } & \$ 12 \\\text { Direct materials per unit } & \$ 100 \\\text { Variable manufacturing overhead costs } & \$ 150,000 \\\text { Fixed manufacturing overhead costs } & \$ 300,000 \\\text { Product and process design costs } & \$ 200,000 \\\text { Marketing and distribution costs } & \$ 250,000\end{array}$$ Required:
a.For long-run pricing,what is the full-cost base per unit?
b.Longball Company is approached by an overseas city to fulfill a one-time-only special order for 1,000 units.All cost relationships remain the same except for an additional one-time setup charge of $40,000.No additional design,marketing,or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order?

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Definitions:

Retail Supermarkets

Large stores offering a wide variety of goods, primarily food and everyday essentials, in a self-service format.

Shelf-Facing

The practice of organizing and presenting products on retail shelves in a manner that makes them easily visible and accessible to customers, influencing their buying decisions.

Products

items or services offered for sale, including physical objects, digital goods, and services, created to meet consumer demands and needs.

Shelf

A physical structure in stores or warehouses for displaying or storing items.