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?

While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. you can't spare the time to pick up the pizza and must have it delivered. "pick-up-sticks" offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). "fred's" offers the round, deep-dish sasquatch, which is 20 inches in diameter. it is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. 1. what is the problem in this situation? state it in an explicit and precise manner. 2. systematically apply the seven principles of engineering economy (pp. 3-6) to the problem you have defined in part (a). 3. assuming that your common unit of measure is dollars (i.e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unit of volume? 4. what other criteria might be used to select which pizza to purchase?

Morgana company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $168,000, $315,900, an $97,200, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,100, machine hours 24,300, and number of inspections 1,800. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

Which of the following is not a consideration when determining your asset allocation