On November 15,20xx,The Cooper Co

question 59

Essay

On November 15,20xx,The Cooper Co.received a special order for 6,000 three-wood golf club sets.These golf clubs will be marketed in Asia.Seto Imports,Inc.,the purchasing company,wants the clubs bulk packaged and is willing to pay $72 per set for the clubs.The president of The Cooper Co.has gathered the following product costing information about the set of woods being discussed: direct materials (wood),$900 per 100 sets; direct materials (metal shafts),$1,200 per 100 sets; and direct materials (grips),$200 per 100 sets.Direct labor is $27 per set.Variable manufacturing costs are $19 per set,and fixed manufacturing costs are 20 percent of direct labor dollars.Variable selling expenses are $14 per set,and variable shipping costs are $9 per set.Fixed general and administrative costs are figured at 30 percent of direct labor dollars.Bulk shipping costs will total $10,000,thus eliminating both variable selling and variable shipping costs from consideration.The company did not expect this order and will reach planned production capacity for the year.However,there is enough plant capacity for the special order.Round answers to two decimal places.
a. Prepare an analysis for the president to use in deciding whether to accept or reject the offer by Seto Imports, Inc. What decision should be made?
b. What is the lowest possible price The Cooper Co. could charge per set of woods and still make a $12,000 profit on this order?

Identify the types of information necessary for each section of an application letter using the AIDA plan.

Comprehend the importance of tone in telephone interviews and the impact of non-verbal cues.

Recognize different types of interviews and their effectiveness in predicting job success.

Differentiate between solicited and prospecting application letters.

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Definitions:

Wholesaler

A type of intermediary in the distribution channel that purchases goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.

Conforming Goods

Merchandise or products that meet the specifications and standards outlined in a purchase contract.

Acceptance

A promise or act on the part of an offeree indicating a willingness to be bound by the terms and conditions contained in an offer. Also, the acknowledgment of the drawee that binds the drawee to the terms of a draft.

Purchase Order

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.