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American Graduate University Operations And Supply Chain Management Assignment Help - Preston Wade

Question - Preston W ade, a local craftsman, normally sells his handcrafted wooden birdhouses for $88 each. Preston has the capacity to produce as many as 50 birdhouses a week. In a normal week, Preston makes 20 birdhouses with the following costs per unit: Direct materials $ 5.00 Direct labor $20.00 Variable overhead $ 4.00 Fixed overhead $ 2.00 Refer to the Preston Wade information above. Preston has received a special order from a local plant nursery for 25 birdhouses. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $200. Preston requires a minimum $2,000 profit on any special order. The minimum price per birdhouse that Pr ...Read More

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