ACCOUNTING PRINCIPLES IT-MANAGERIAL CHAPTER 9 TBC Special Order Six Springs Resorts has approached Barton Printers, Inc., with a special order to produce orders 300,000 two-page brochures. Most of Barton's work consists of recurring sh to handle the x Springs Resorts is offering a one-time order, and Barton has the capacity order over a two-month period. Springs Resorts' management has stated that the company would be unwilling to pay more Barton's controller assembled the following cost date thant $48 per 1,000 brochures. this decision analysis: $26.80 per 1,000 brochures Direct Materials (paper) 6.80 per 1,000 brochures Direct Labor Costs 4.40 per 1,000 brochures Direct Materials (ink) 6.20 per 1,000 brochures Variable ProductionOoverhead 1.00 per direct labor dollar Machine Maintenance (fixed cost) 2.40 per direct labor dollar Other Fixed Production Overhead 4.30 per 1,000 brochures Variable Packing Costs General & Administrative Expenses 5.25 per direct labor dollar (fixed costs) to be allocated INSTRUCTIONS: 1. Prepare an analysis for Barton's management to use in deciding whether to accept or reject six Springs Resorts' offer. What decision should be made? Support your decision 2. What is the lowest possible price Barton can charge per thousand and still make a $6,000 profit on the order? Support with calculations. ACCOUNTING PRINCIPLES IT-MANAGERIAL CHAPTER 9 TBC Special Order Six Springs Resorts has approached Barton Printers, Inc., with a special order to produce orders 300,000 two-page brochures. Most of Barton's work consists of recurring sh to handle the x Springs Resorts is offering a one-time order, and Barton has the capacity order over a two-month period. Springs Resorts' management has stated that the company would be unwilling to pay more Barton's controller assembled the following cost date thant $48 per 1,000 brochures. this decision analysis: $26.80 per 1,000 brochures Direct Materials (paper) 6.80 per 1,000 brochures Direct Labor Costs 4.40 per 1,000 brochures Direct Materials (ink) 6.20 per 1,000 brochures Variable ProductionOoverhead 1.00 per direct labor dollar Machine Maintenance (fixed cost) 2.40 per direct labor dollar Other Fixed Production Overhead 4.30 per 1,000 brochures Variable Packing Costs General & Administrative Expenses 5.25 per direct labor dollar (fixed costs) to be allocated INSTRUCTIONS: 1. Prepare an analysis for Barton's management to use in deciding whether to accept or reject six Springs Resorts' offer. What decision should be made? Support your decision 2. What is the lowest possible price Barton can charge per thousand and still make a $6,000 profit on the order? Support with calculations