5.4 Connect: Cases and Problems Assignment i Saved Help Save & Exit Submit Check my work 11 PA7-8 (Static) Analyzing Special-Order Decision [LO 7-2, 7-3] 5 Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and points designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 80 percent (96,000 units) of its capacity: Skipped Sales revenue $960, 000 Cost of goods sold 492,000 eBook Gross profit $468,000 36,000 Print Operating expenses Net operating income $432, 000 References Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 20,000 cups for $8 each (total $160,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $60,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses. Required: 1. Complete the incremental analysis of the special order in the table provided below. 2. Should Camino accept this special order? 3. If Camino were operating at full capacity, what price would Camino require for the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the incremental analysis of the special order in the table provided below. (Enter per unit answers to 2 decimal places.)Check my work 11 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 20,000 cups for $8 each (total $160,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a 5 $60,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses. points Skipped Required: 1. Complete the incremental analysis of the special order in the table provided below. 2. Should Camino accept this special order? 3. If Camino were operating at full capacity, what price would Camino require for the special order? eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Complete the incremental analysis of the special order in the table provided below. (Enter per unit answers to 2 decimal places.) Per cup Total Incremental Revenue Less: Incremental Costs Variable COGS Variable Operating Expenses Endorsement Fee Incremental Profit 5.4 Connect: Cases and Problems Assignment i Saved Help Save & Exit Submit Check my work 11 Operating expenses 36,000 Net operating income $432,000 5 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from points a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 20,000 cups for $8 each (total $160,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a Skipped $60,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses. Required: eBook 1. Complete the incremental analysis of the special order in the table provided below. 2. Should Camino accept this special order? Print 3. If Camino were operating at full capacity, what price would Camino require for the special order? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If Camino were operating at full capacity, what price would Camino require for the special order? Price per Cup Mc
