Forrest Corporation manufactures parts that are used in the…

Questions

Fоrrest Cоrpоrаtion mаnufаctures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65: Direct materials $30 Direct labor $15 Variable manufacturing overhead $12 Fixed manufacturing overhead $19 Variable selling costs $22 The company received a special-order inquiry from an appliance manufacturer in Brazil for 12,000 units of part no. 65. $13 of fixed manufacturing will be avoided on the order, and the variable selling costs per unit will amount to only $7. Usually the company sells the part no. 65 at price of $125. Required. (a) Assume Forrest has excess capacity, what is the minimum price that Forrest should charge the Brazil manufacturer? (b) Assume Forrest has NO excess capacity, what is the price that Forrest should charge the Brazil manufacturer?

          First Nаtiоnаl Bаnk Bоx 76 Melbоurne, Fla.  32901 October tenth, two-thousand and twenty-five   Joe Bloom, President Acme Advertising 70 Wickham rd.  Melbourne, Fla.  32940 Dear Sir: This is in response to your company’s letter of recent date inquiring about the types of additional services that may be available to customers of the First National Bank of Melbourne.  Pursuant to these queries, the following answers, this office trusts, will prove helpful. Please be advised that the Board of Directors at First National has a continuing reputation for servicing the needs of Melbourne community, especially the business community.  For the last fifty years—half of a century—First National has provided the funds necessary for the growth, success, and expansion of many local firms, yours included.  This financial support has bestowed many opportunities on a multitude of business owners, residents of Melbourne, and even residents of surrounding local communities. The Board is at this present writing currently deliberating, with its characteristic caution, over a variety of options suggested to us by our patrons, including your firm.  These options, if the Board decides to act upon them, would enhance the business opportunities for financial transactions at First National.  Among the two options receiving attention by the Board at this point in time are the creation of a branch office in the rapidly growing north side of Melbourne plus on the Florida Tech campus.  These areas have many customers who rely on the services of First National.  The Board may also place a business load department in the new branch. If this office of the First National Bank of Melbourne might be of further helpful assistance, please advise.  Remember, banking with First National Bank is a community privilege. Humbly yours,   Public Relations Director                                                                                                                                                              

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