Acct 2020 Spring 2023 Stovall Homework: Ch. 8 Homework Question 3, E8-22A (similar to) Bailey Wallace...

Transcribed Image Text:

Acct 2020 Spring 2023 Stovall Homework: Ch. 8 Homework Question 3, E8-22A (similar to) Bailey Wallace HW Score: 59.3%, 5.93 of 10 points O Points: 0 of 1 Save Ace Industries has an annual plant capacity of 73,000 units current production is 58,000 units per year. At the current production volume, the variable cost per unit is $28.00 and the fixed cost per unit is $3.90. The noma selling price of Ace's product is $43.00 per unit. Ace has been asked by Dexter Company to fil a special order for 11,000 units of the product at a special sales price of $22.00 per unit. Dexter is located in a foreign country where Ace does not currently operate. Dexter will market the units in its country under its own brand name, so the special order is not expected to have any effect on Ace's regular sales Read the requirements % % Requirement 1. How would accepting the special order impact Ace's operating income? Should Ace accept the special order? Complete the following incremental analysis to determine the impact on Ace's operating income if it accepts this special order. (Enter a "" for any zaro balances Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order) Incremental Analysis of Special Sales OrderDecision Revenue from special order Less expenses associated with the order Less: Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Total Order (11.000 units) Requirements 1. How would accepting the special order impact Adv Should Ace accept the special order? ng income? 2. How would your analysis change the special order sales price were to be $38.00 per unit and Ace would have to pay an atomey a $20.000 make sure it is complying with export laws and regulations relating to the Help me solve this Video Get more help. MacBook Air Print Done Acct 2020 Spring 2023 Stovall Homework: Ch. 8 Homework Question 3, E8-22A (similar to) Bailey Wallace HW Score: 59.3%, 5.93 of 10 points O Points: 0 of 1 Save Ace Industries has an annual plant capacity of 73,000 units current production is 58,000 units per year. At the current production volume, the variable cost per unit is $28.00 and the fixed cost per unit is $3.90. The noma selling price of Ace's product is $43.00 per unit. Ace has been asked by Dexter Company to fil a special order for 11,000 units of the product at a special sales price of $22.00 per unit. Dexter is located in a foreign country where Ace does not currently operate. Dexter will market the units in its country under its own brand name, so the special order is not expected to have any effect on Ace's regular sales Read the requirements % % Requirement 1. How would accepting the special order impact Ace's operating income? Should Ace accept the special order? Complete the following incremental analysis to determine the impact on Ace's operating income if it accepts this special order. (Enter a "" for any zaro balances Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order) Incremental Analysis of Special Sales OrderDecision Revenue from special order Less expenses associated with the order Less: Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Total Order (11.000 units) Requirements 1. How would accepting the special order impact Adv Should Ace accept the special order? ng income? 2. How would your analysis change the special order sales price were to be $38.00 per unit and Ace would have to pay an atomey a $20.000 make sure it is complying with export laws and regulations relating to the Help me solve this Video Get more help. MacBook Air Print Done