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Calendar Company Special Order Analysis Scenario 1 Calendar Company makes calendars for stores, retail shops, etc. In an average year they sell 100,00 calendars at
Calendar Company Special Order Analysis Scenario 1 Calendar Company makes calendars for stores, retail shops, etc. In an average year they sell 100,00 calendars at $20 each Variable Expenses include the following: Manufacturing Selling & Admin Fixed Expenses are $555,000 $6.00 $3.00 XYZ Company wants to order 15,000 units at $14 each. This is within your capacity to fill Without Special Order With Special Order Special Order Total Per Unit Units Sales Variable Expenses Contribution Margin Fixed Expenses Operating Income Percentage of Operating Income Increase= Recommendation: Scenario 2 The Boy Scouts want 20,000 units at $12 each. This will increase your fixed manufacturing costs by $40,000 Without Special Order Special Order With Special Order Total Per Unit Units Sales Variable Expenses Contribution Margin Fixed Expenses Operating Income Percentage of Operating Income Increase= Recommendation
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