Globe Manufacturing Company Has Just Obtained a Request for a Special

question 101

Essay

Globe Manufacturing Company has just obtained a request for a special order of 12,000 units to be shipped at the end of the current year at a discount price of $7.00 each.The company has a production capacity of 90,000 units per year.At present,Globe is only selling 80,000 units per year through regular channels at a selling price of $11.00 each.Globe's per unit costs at an 80,000 unit level of production and sales are as follows:

Variable selling and administrative expense will drop to $0.30 per unit on the special order units.The special order has to be taken in its entirety.This means that by accepting the special order,Globe will be forced to not sell 2,000 units to its regular customers.
Required:
If Globe accepts this special order,by what amount will its net operating income increase or decrease? SHOW YOUR COMPUTATIONS.

Understand the concept of geometric dimensioning and tolerancing symbols.

Grasp the principles of maximum and least material conditions (MMC & LMC).

Learn the applications and implications of specified and unspecified geometric tolerances.

Comprehend the importance of the virtual condition in dimensioning and tolerancing.

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Definitions:

Muscle Spindles

Sensory receptors within the belly of a muscle that primarily detect changes in the length of the muscle and send signals to the central nervous system.

Superficial Pain

Pain that occurs on the skin or surface tissues, typically sharp but not deep-seated.

Visceral Pain

Pain arising from the internal organs, often described as a deep squeeze, pressure, or ache.

Mechanoreceptors

Sensory receptors sensitive to mechanical pressures or changes, involved in sensations such as touch, pressure, and sound.