Purchase Solution

Special order-GS tiger covers

Not what you're looking for?

Ask Custom Question

GS is currently making 500 tiger covers a week at a per unit cost of 3.50 euros which includes both variable costs and allocated fixed cost. GS sell the tiger covers to distributors for 4.25 euros. A distributors in japan wants to purchase 100 tiger covers per week from GS. GS 2 euros per head cover. GS the capability to produce the additional 100 tiger head covers and estimates that the per unit cost of all 600 covers will 3.10 euros. Assume the cost data provided(3.50-3.10 euros are accurate estimates of GS's cost of producing the tiger covers. Further assume that the GS's variable cost per cover does not vary with the number of head cover manufactured.

Purchase this Solution
Solution Summary

This solution provides a detailed step by step explanation of the given business math problem involving a special order.

Solution Preview

I hope that this solution helps you with your assignment and thank you for using BrainMass.com.

If GS does not take order from the Japanese distributor,
Total cost of 500 tiger covers=500*3.5=1750
Assume variable cost per unit is V, ...

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Fixed Costs and Maximizing Firm Value

    Given the data, what is GS weekly fixed cost of producing the tiger head covers?

  • Managerial: Golf Specialties; Montana Pen; Negative Opportunity Costs; Max stores

    GS is currently making 500 tiger head covers a week at a per unit cost of 3.50 euros, which includes both variable costs and allocated fixed costs. GS sells the tiger head covers to distributors for 4.25 euros.

  • How should Tiger approach segmenting its customers

    Tiger current service offerings to its entire customer base include product quality, order fill rates, lead time, delivery time, payment terms, and customer service support.

  • Tiger Shark Population

    The biologists need to capture 1 more adult tiger shark less than 10.5 feet in length in order to complete their study. Along which coast will the researchers have a higher probability of capturing the shark they need? Explain your reasoning. 20.

  • Privatization of Tiger Leaping Guest House

    The new 5 star hotel operations human resource staff must also make a special effort to create codes of conduct for all the employees.

  • Sql Queries for Employees, Projects, Salary tables

    Order your answer by total_price_spent in descending order. Only show the employees who spent more than their credit limit (Modify question 9 from the last homework.) 7.

  • Cost Volume Profit Analysis

    Rusty has been offered an special order for 20000 more grates, but it's at a lower price ($55.00 instead of $65.00) and he would have to rent more factory space at a total cost of $80,000. E1.

  • Traditional v ABC Method of Pricing

    This means that a part that requires a special machine might cost more because the cost of paying for that machine will be different. A part that requires a common alloy will be less than one that requires the use of special alloys.

  • Classifying Cost

    Advertising costs GS&A / Expense Promotion Costs GS&A / Expense Production Supplies Product / Assets as these are used in production Depreciation on administrative building GS&A / Expense - as it is administrative Depreciation on manufacturing equipment

View More Related Solutions