Anchor Company manufactures a variefy of tool boxes. The firm is curtently operating at 80% of ins full capacity of 5,000 machitichours pet month. Each unit requires 30 minutes of machine time lits sales manager has been looking for special ordets to make productive use of the excess cepecity, JCL Ltd a potental customet, has offered to buy f0.000 tool boxes at $1470 per box, pro videt That the entire quantity is deilivered in two months. The current per-box cost data are as follows floth fived and whitab sorerhead are aliocated using direct labour-hours as a base. Voriabie overtiead is $330 per direct labour-hou Writoout the ordet, Anchor would have enough business to operate at 4.300 direct labout hours in each of the next two months. The regulair setilig poice af the tool baxes is 51070 . A sales commission of 50 cents per unit is pax to sales representatives on all regalat thles No aciditionial seliexg or administrative expenses are anticipated on account of accepting thig spechil cider and no commissions will be paid an this specustorider. The production manager w conceined about the labour time that to,000 boxes would requice she cannot schectile overtime because necessary for Anchor Company to divert some of its regutar sales to the speciat order Required. 1-a. Prepare contribution margin income statements for the twa-month period both with and without the special oidet (Leave no celis blank - be cartain to nomein Required: 1-a. Prepare contribution margin income statements for the two-month period both with and without the special order (Leave n blank - be certain to enter "O" wherever required.) Anchor Company manufactures a variefy of tool boxes. The firm is curtently operating at 80% of ins full capacity of 5,000 machitichours pet month. Each unit requires 30 minutes of machine time lits sales manager has been looking for special ordets to make productive use of the excess cepecity, JCL Ltd a potental customet, has offered to buy f0.000 tool boxes at $1470 per box, pro videt That the entire quantity is deilivered in two months. The current per-box cost data are as follows floth fived and whitab sorerhead are aliocated using direct labour-hours as a base. Voriabie overtiead is $330 per direct labour-hou Writoout the ordet, Anchor would have enough business to operate at 4.300 direct labout hours in each of the next two months. The regulair setilig poice af the tool baxes is 51070 . A sales commission of 50 cents per unit is pax to sales representatives on all regalat thles No aciditionial seliexg or administrative expenses are anticipated on account of accepting thig spechil cider and no commissions will be paid an this specustorider. The production manager w conceined about the labour time that to,000 boxes would requice she cannot schectile overtime because necessary for Anchor Company to divert some of its regutar sales to the speciat order Required. 1-a. Prepare contribution margin income statements for the twa-month period both with and without the special oidet (Leave no celis blank - be cartain to nomein Required: 1-a. Prepare contribution margin income statements for the two-month period both with and without the special order (Leave n blank - be certain to enter "O" wherever required.)
