Ripple Pool Toys Corporation manufactures a variety of pool toys. Ripple has just received a special order for a large volume of pool toys at reduced special order prices. The following is a screenshot of the special order in an Excel file in a worksheet named SpecialOrder.

To follow is a sample from Ripple’s job cost records from the most recent month from a worksheet named Job Cost Records. The list is sorted chronologically with the most recent orders first. This Job Cost Records worksheet contains 445 job cost records.

Requirement 

1. Use the VLOOKUP function in Cells F2 through F11 in the Special Order worksheet to look up the most recent variable cost for each item in the Job Cost Records worksheet.
2. Enter the formula to calculate contribution margin per pack in Cells G2 through G11 in the Special Order worksheet.
3. Calculate the total contribution margin from the special order in Cell H12 in the Special Order worksheet.
4. Should the company accept this special order? Explain your answer.

Transcribed Image Text:

A Model # 1 2 DR-580 3 BB-329 4 FR-250 5 FR-760 6 BP-100 7 FC-900 8 FM-991 9 FL-030 10 FL-060 11 FL-120 12 Type Diving ring set, 10-pack Beach balls, 50-pack Foam rafts, regular, 20-pack Foam rafts, premium, 10-pack Baby pool toys, variety 6-pack Floating cup holders, 50-pack Foam noodle, variety, 50-pack Inflatable small floats, 20-pack Inflatable medium floats, 10-pack Inflatable large floats, 5-pack Quantity Price per pack 150 $ 100 $ 100 $ 75 $ 75 $ 150 $ 75 $ 100 $ 75 $ 75 $ Total Revenue 22 $ 3,300 50 $ 5,000 5,000 4,125 3,000 5,550 2,625 6,000 3,750 3,000 41,350 50 $ 55 $ 40 $ 37 $ E 35 $ 60 $ 50 $ 40 $ $ F Variable Contribution cost per pack margin per pack H Total contribution margin