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Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit: Materials Variable overhead Fired overhead (51,058.400 per year, 108,000 units

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Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit: Materials Variable overhead Fired overhead (51,058.400 per year, 108,000 units per year) Total $32.20 Simpson Company has approached Andreason with an offer to buy 6.000 thermostats at a price of $38 each. The regular price is $58. Andreasen has the capacity to produce the 6.000 additional units without afecting current production of 100,000 units Empon requires that each unit use branding, which requires a more expensive label resubing in an actional $1.50 per un material cost. The labor cost of afong the label will be the same as for the current models. The Simpson order will require a one-mo rental of packaging equipment for $54.400 Required: a. Prepare a schedule to show the impact of filing the Simpson order on Andreason's profits for the year (Enter your answers in thousan 5.400.4). Select option "higher" or "lower", keeping Status Quo as the base Select "none" if there is no effect) (All Costs in Thousands of Dollars) Status Quo 114.000 UN Difference 50 .20000 04820000 Operating profits) b. Do you agree with the decision to accept the special order? No Yes Andreasen Corportion manufactures thermostats for office buildings. The following is the cost of each unit Material Labor Fixed overhead (51,058.400 per year, 108,000 units per year) 20 Simpson Company has approached Andreasen with an offer to buy 5,000 thermostaat a price of $38 each The regular price is $58. Andreasen has the capacity to produce the 6.000 aditional units without affecting its current production of 108.000 units Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $1,80 per unit material cost. The labor cost of afforing the label will be the same as for the current models. The Simpson order will require a one-timental parang ment for $54,400 Required a. Prepare a schedule to show the impact of the Simpson order on Andre ' goes for the yea r your answers in thousand rounded to 1 decimal place 5,400.4). Select option higher or lower, keeping Status Quo as the base Select one there is no effect) 5.400.400 should be entered as (All Costs in Thousands of Dollars) Status Quo Alternative Derence Loss variable Materials Varvad Contribution margin Less: Faedo Operating promos) b. Do you agree w e decision to accept the seconde

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