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Mary Baldwin College Operations And Supply Chain Management Assignment Help - The Melville Company


Question - The Melville Company produces a single product called a Pong. Melville has the capacity to produce
60,000 Pongs each year. If Melville produces at capacity, the per unit costs to produce and sell one
Pong are as follows. Use the data for questions 7 to 9.

Direct materials
$15

Direct labor
12

Variable manufacturing overhead
8

Fixed manufacturing overhead
9

Variable selling expense
8

Fixed selling expense
3
The regular selling price for one Pong is $80. A special order has been received by Melville from
Mowen Company to purchase 6,000 Pongs next year. If this special order is accepted, the variable
selling expense will be reduced by 75%. However, Melville will have to purchase a specialized
machine to engrave the ...Read More

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