Rome Metals Cost BreakdownPer Unit Direct materials $8 Direct labor $45 Variable overhead $9 Fixed overhead $14 Shipping Cost $2 Total Per Unit $78

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Rome Metals Consume BreakdownPer Ace Direct materials $8 Direct drudge $45 Variable over $9 Fixed over $14 Shipping Consume $2 Total Per Ace $78  

Rome Metals a US naturalized decided located in Rome, Georgia shapes metal grasps used in the interpretation of repository shelving. The decided has a skilled size of 42,000 aces and for the elapsed distinct years has produced at a perpetual dimensions of 35,000 aces/year. Rome Brackets are figured at $92/unit. The manufacturing consumes incurred to shape a grasp at the 35,000 ace smooth is shown over. Note that the $2/ace shipping consume is intervening in the manufacturing consumes breakdown. An enjoin for 10,000 has been ordinary from a new customer - Fedex Logistics Services - but at a required figure of barely $78/unit. Fedex has agreed to eliminate up the enjoin from the Rome adroitness itself saving Rome Metals the shipping fee. Due to important constraints Rome Metals cannot adjust its skilled size nor does the decided entertain any virtual outsourcing partners. Assuming no missing of stout customer goodwill, should Rome Metals sanction the prproffer from Fedex Logistics Services.

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