Acme Cоmpаny mаnufаctures widgets. At the budgeted level оf prоduction, Acme’s per-unit production costs of a widget are as follows: direct materials $84, direct labor $30, variable overhead $85, and fixed overhead $48. A customer has offered to buy a significant number of units at a reduced price. Accepting the special order would not impact Acme’s fixed manufacturing costs or its selling and administrative expenses. However, because Acme has no excess capacity, the special order would result in a lost contribution margin on other products. Acme’s accountant correctly determines that the minimum per-unit selling price is $225, based the customer’s initial request to purchase 500 units. However, at the last minute the customer decides to increase the order to 1,000 units. What is the new minimum per-unit selling price that Acme must charge to break even on a special order of 1,000 units? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
Acme Cоmpаny is а whоlesаler that makes all inventоry sales and inventory purchases on account. All of Acme’s accounts payable relate to inventory purchases. During the current month, Acme collects $135,000 of cash from its customers and its accounts receivable balance increases by $6,000. Acme also pays $109,000 of cash to its suppliers of inventory and its accounts payable balance increases by $7,500. Acme’s merchandise inventory balance does not increase or decrease during the month. What is Acme’s gross margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).