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(Solved): Riel Company manufactures a varlety of tool boxes. The firm is currently operating at 80% of its ful ...



Riel Company manufactures a varlety of tool boxes. The firm is currently operating at

80%

of its full capacity of 6,200 machine-hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orders to make productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at

$14.30

per box, provided that the entire quantity is delivered in two months. The current per-box cost data are as follows: \table[[Direct materials,

$4.20


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