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Alpine Luggage has a capacity to produce 450,000 suitcases per year. The company is currently producing and selling 370,000 units per year at a selling
Alpine Luggage has a capacity to produce 450,000 suitcases per year. The company is currently producing and selling 370,000 units per year at a selling price of $402 per case. The cost of producing and selling one case follows:
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Chaptor 4 graded homework InstructionG I help Question 1 fof 4 Save & Exit Suemit 25.00 pois pine Lugsage has a capacity lo produce 450,000 suilcases per year The company is currenily peoducing and seling 370,000 units per year at a selling price of $402 per case. The cost of producing and selling ane case Sollowe van le manutacturing costs Fload ma ufecturing costs ing and administrative costs 300 The comparny has received a special arder for 20,000 suicases at a price of $250 per case. It will not have to pay arry sales commission on the special order, so the variable selling and administrative costs would be only $49 per suitcase. The special order would have no effect on total fowed costs The company has rejected the offer based on the folowing camputations 8 250 161 Seling price per case Variable manutacturing costs Fled manufacturing costs variable seing and drinstratve costs Faed seling and sdministrative costa Not prott (loss) par case Required: a. What is the impact on profit for the year if Alpine accepts the special order? (Enter your answers in thousands of dollars. Select option "higher" or "lower".keeping Status Quo as the base. Select "none" if there is no effect. Status Quo Allernative Sales revenue Seling and admintranive pront b. Do you agroe with the decision to reject the spocial order? O YesStep by Step Solution
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