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Camino Com COMM 2020 Midterm #2 - Fall 2021 ffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed
Camino Com COMM 2020 Midterm #2 - Fall 2021 ffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 75 percent (60,000 units) of its capacity: Sales revenue Cost of goods sold Gross profit Operating expenses Net operating income $840,000 330,000 $510,000 30,000 $480,000 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 17,000 cups for $9 each (total $153,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $34,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses. Required: 1. How much would Camino's Net Operating Income change by accepting the special order? (Input a decrease in income with a minus sign.) Change in Net Operating Income from accepting the special order Total $ 37,400 2. If Camino were operating at full capacity, what price per cup would Camino require for the special order? Price per Cup
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