Pilgrim Corporation Makes a Range of Products

question 67

Essay

Pilgrim Corporation makes a range of products.The company's predetermined overhead rate is $23 per direct labor-hour,which was calculated using the following budgeted data:

Management is considering a special order for 800 units of product N89E at $69 each.The normal selling price of product N89E is $88 and the unit product cost is determined as follows:
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If the special order were accepted,normal sales of this and other products would not be affected.The company has ample excess capacity to produce the additional units.Assume that direct labor is a variable cost,variable manufacturing overhead is really driven by direct labor-hours,and total fixed manufacturing overhead would not be affected by the special order.
Required:
If the special order were accepted,what would be the impact on the company's overall profit?

Appreciate the role of significant individuals and their legacies in the colonization of North America.

Understand the development and implications of the slave trade and African presence in the early colonies.

Examine the social, political, and economic structures of early European colonies and their evolution over time.

Interpret the causes and effects of conflicts between colonists and Native Americans and among European powers in North America.

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Definitions:

Equilibrium Price

The cost at which the supply and demand for goods are exactly balanced in the market.

Fine

A sum of money required to be paid as a penalty for breaking the law or rules.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Variable Costs

Expenses that vary directly with the level of production or output, such as raw materials and labor costs.