My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
Opportunity costs. (H. Schaefer, adapted) The Wild Orchid Corporation is working at full…
Opportunity costs. (H. Schaefer, adapted) The Wild Orchid Corporation is working at full production capacity producing 13,000 units of a unique product, Ever last. Manufacturing cost per unit for Ever last is: Manufacturing overhead cost per unit is based on variable cost per unit of $8 and fixed costs of $78,000 (at full capacity of 13,000 units}. Marketing cost per unit, all variable, is $4, and the selling price is $52. A customer, the Apex Company, has asked Wild Orchid to produce 3,500 units of Strong last, a modification of Ever last. Strong last would require the same manufacturing processes as Ever last. Apex has offered to pay Wild Orchid $40 for a unit of Strong last and share half of the marketing cost per unit. Required 1. What is the opportunity cost to Wild Orchid of producing the 3,500 units of Strong last? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,500 units of Ever tast for Wild Orchid so that Wild Orchid may accept the Apex offer. That is, if Wild Orchid accepts the Chesapeake offer, Wild Orchid would manufacture 9,500 units of Ever tast and 3,500 units of Strong tast and purchase 3,500 units of Ever last from Chesapeake. Chesapeake would charge Wild Orchid $36 per unit to manufacture Ever last. On the basis of financial considerations atone, should Wild Orchid accept the Chesapeake offer? Show your calculations. 3. Suppose Wild Orchid had been working at less than full capacity, producing 9,500 units of Ever last, at the time the Apex offer was made. Calculate the minimum price Wild Orchid should accept for Strong last under these conditions. (Ignore the previous $40 selling price.)
