1.

Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.60 The cost of each unit follows: Materials Labor Variable overhead Fixed overhead ($14,250 per month, 19,000 units per month) S 1.10 0.80 0.20 0.75 S 2.85 Total costs per unit One of Rutkey's regular customers asked the company to fill a special order of 600 units at a selling price of $2.85 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concemed about selling at a price below the $2.85 cost per unit and has asked for your advice. Required a. Prepare a schedule to show the impact of providing the special order of 600 units on Rutkey's profits in addition to the regular production and sales of 19,000 units per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "None" if there is no effect.) Status Quo 19,000 Cars Alternative 19,600 Cars Difference Sales revenue Less variable costs Materials Labor Variable overhead Total variable cost Contribution margin Less: Fixed costs Operating profit