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Adams Furniture receives a special order for 10 sofas for a special price of $3,200. The direct materials and direct labor for each sofa are
Adams Furniture receives a special order for 10 sofas for a special price of $3,200. The direct materials and direct labor for each sofa are $110. In addition, supervision and other fixed overhead costs average $160 per sofa. Required: at. What is the impact on operating income from accepting the special order? 22. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $550? b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity? Complete this question by entering your answers in the tabs below. Regat Reg 2 Regbi Reqb2 What is the impact on operating Income from accepting the special order? Operating income would Rega Req a2 > by per sota Reg a1 Req a2 Regbi Reqb2 Based solely on a short-term financial analysis, should Adams accept the special order? OYos No Reg at Rega2 Req bi Reg 02 If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers of the special sales order is accepted and the selling price per unit on regular sales equals $5507 Opportunity.com per sofa Complete this question by entering your answers in the tabs below. Regal Reg a2 Req bi Reg De Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity? OYes Ono
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