Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 115,000 units of a patented el

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Integrated Masters Inc Imi Is Presently Operating At 80 Of Capacity And Manufacturing 115 000 Units Of A Patented El 1 (31.04 KiB) Viewed 40 times

Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 115,000 units of a patented electronic component. The cost structure of the component is as follows: Raw materials Direct labor Variable overhead Fixed overhead 7.78 per unit 7.78 per unit 9.78 per unit $529,000 per year An Italian firm has offered to purchase 21,700 of the components at a price of $325 per unit, FOB IMI's plant. The normal selling price Is $37.1 per component. This special order will not affect any of IMI's "normal" business. Management calculated that the cost per component is $29.7, so it is reluctant to accept this special order. Required: a. Calculate the fixed overhead per unit? b. Is the cost calculation appropriate? c. Should the offer from the Italian firm be accepted? Complete this question by entering your answers in the tabs below. Reqa Reg B and C Calculate the fixed overhead per unit? (Round your answer to 2 decimal places.) Fixed overhead per unit < ReqA Req B and C >