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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