1 6.66 ginta 20 Sherene Nill manages a company that produces wedding gowns. She produces both a custom product that is made to order and standard product that is sold in bridal salons. Her accountant prepared the following forecasted Income statement for March, which is a busy month: Custos Standard Dresses Dresses Total Number of dresses 1a Sales $52, 532.0 584,000 Materials $18,438 58,480 $18,00 Labor 20.480 9.4 29.00 Machine depreciation 548 90 Runt 4, 3,220 7.80 Heat and light 1.100 780 1,00 Other production costs 3,200 Marketing and administration 8,100 Total costs $70,488 Operating profit $13,520 Print Raven Ms. Nili slresdy has orders for the 10 custom dresses reflected in the March forecasted Income statement. The depreciation charges are for machines used in the respective product lines. Machines depreciate at the rate of $1 per hour based on hours used, so these are variable costs. In March, cutting and sewing machines are expected to operate for 990 hours, of which 640 hours will be used to make custom dresses. The rent is for the building space, which has been lessed for several years st $7.800 per month. The rent, hest and light are allocated to the product lines based on the amount of floor space occupied. A valued customer, who is a wedding consultant has ssked Ms. Nils for a special favor. This customer has a client who wants to get married in early April. Ms. Nil's company is working at capacity and would have to give up some other business to make this dress. She can't renege on custom orders already agreed to, but she can reduce the number of standard dresses produced in March to 10. Ms. Nill would lose permanently the opportunity to make up the lost production of standard dresses because she has no unused capacity for the foreseeable future. The customer is willing to pay $26.000 for the special order. Materials and labor for the order will cost $6,400 and $10,400, respectively. The special order would require 156 hours of machine time. Ms. Ni's company would save 170 hours of machine time from the standard dress business given up. Rent, heat and light, and other production costs would not be affected by the special order. Required: --1 Calculate the differential operating profit loss! 2-2 From an operating profit loss perspective for March, should Ms. Nill sccept the order? b. Winst is the minimum price M. Nill should accept to take the special order? Complete this question by entering your answers in the tabs below. RAI ie AI Ru Calculate the differential operating profit (loss). Select option increase' or 'decrease", keeping without special order as the base Select "none" If there is no effect.) without prolai Order With Balai Order Impact 5 84,000 18,000 29,800 980 Revenue Materials Labor Machine depreciation Contribution margin Rent Hoist and light Other production costs Marivating and administration Operating profit (los) 7,800 1,800 2200 WWWWWWWWW 8,100 ROGA Roq A2 > Complete this question by entering your answers in the tabs below. RA1 RA From an operating profit (los) perspective for March, should Ms. Nu accept the order? Yes ONS RA1 RA2 RB What is the minimum pries Ms. NI should accept to take the special order? Minimum price