Business, 05.11.2019 04:31 ahoney2233

Integrated masters inc. (imi) is presently operating at 80% of capacity and manufacturing 131,000 units of a patented electronic component. the cost structure of the component is as follows: raw materials $ 7.10 per unit direct labor 7.10 per unit variable overhead 9.10 per unit fixed overhead $ 524,000 per year an italian firm has offered to purchase 21,100 of the components at a price of $29.5 per unit, fob imi's plant. the normal selling price is $35.3 per component. this special order will not affect any of imi's "normal" business. management calculated that the cost per component is $27.3, so it is reluctant to accept this special order. required: calculate the fixed overhead per unit? is the cost calculation appropriate? should the offer from the italian firm be accepted?

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Integrated masters inc. (imi) is presently operating at 80% of capacity and manufacturing 131,000 un...

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