Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The Fresno Company manufactures slippers and sells them at $13 a pair Variable manufacturing cost is $6.50 a pair, and allocated fixed manufacturing cost

1. The Fresno Company manufactures slippers and sells them at $13 a pair Variable manufacturing cost is $6.50 a pair, and allocated fixed manufacturing cost is $2.00 a pair. It has enough idle capacity available K to accept a one-time-only special order of 5,000 pairs of slippers at $8.50 a pair. Fresno will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $10,000 increase, (c) $32,500 increase, or (d) $42,500 increase? Show your calculations 2. The Portland Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 20,000 units of Part No. 498 is as follows. (Click to see the manufacturing cost per unit.) Read part 2's requirement 1. The Fresno Company manufactures slippers and sells them at $13 a pair Variable manufacturing cost is $6.50 a pair, and allocated fixed manufacturing cost is $2.00 a pair. It has enough idle capacity available to accept a one-time-only special order of 5,000 pairs of slippers at $8.50 a pair Fresno will not incur any marketing costs as a result of the special order What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $10,000 increase, (c) $32,500 increase, or (d) $42,500 increase? Show your calculations. Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Special order price per unit S Variable manufacturing cost per unit Contribution margin per unit x units in special order Effect on operating income What would the effect on operating income be if the special order could be accepted without affecting normal sales? OA. SO B. $10,000 increase OC. $32,500 increase $ 8.50 6.50 *** 2.00 5,000
image text in transcribed
image text in transcribed
Can you please help me solve requirement number 2.
(Click to see the mandacturng cost per unt) Resd part 25 icourenses (1) \$te,000 increase C. sy scoincrease 2. The Portand Company manulactures Part No 498 fof use in fis production ine. The mandactanng cest per unt lor 20.000 unts of Pat No 496 is as folows Ifit (Cick to see the manulacluring cost per unit)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smart Sexy Auditing Clerk

Authors: Funny Career Quotes

1st Edition

B08RRJ97CP, 979-8588903189

More Books

Students also viewed these Accounting questions

Question

Explain what scientific methods are and why they are important.

Answered: 1 week ago

Question

c. What groups were least represented? Why do you think this is so?

Answered: 1 week ago

Question

7. Describe phases of multicultural identity development.

Answered: 1 week ago