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can someone explain this? Thank you Raymond Industries has an annual plant capacity of 65,000 units; current production is 53,000 units per year. At the
can someone explain this? Thank you
Raymond Industries has an annual plant capacity of 65,000 units; current production is 53,000 units per year. At the current production volume, the variable cost per unit is $27.00 and the fixed cost per unit is $4.60. The normal selling price of Raymond's product is $46.00 per unit. Raymond has been asked by Caldwell Company to fill a special order for 8,000 units of the product at a special sales price of $23.00 per unit. Caldwell is located in a foreign country where Raymond does not currently operate. Caldwell will market the units in its country under its own brand name, so the special order is not expected to have any effect on Raymond's regular sales. Read the requirements. Requirement 1. How would accepting the special order impact Raymond's operating income? Should Raymond accept the special order? The special order will Raymond's operating income by $ Thus, Raymond accept the special sales order. Requirement 2. How would your analysis change if the special order sales price were to be $43.00 per unit and Raymond would have to pay an attorney a fee of $19,000 to make sure it is complying with export laws and regulations relating to the special order? Raymond's operating income by $ Thus, Raymond Under these new assumptions, the special order will accept the special sales order. Snap! is a specialty popcorn store. It offers two varieties of popcorn: plain and flavored. The flavors range from Caramel Popcorn to Dark Chocolate Drizzled Popcorn to White Cheddar Popcorn. The plain popcorn sells for $2.80 per box and costs $0.60 per box to make. The flavored popcorn sells for $3.60 per box and costs $2.40 per box to make. Snap! has fixed costs per month of $3,010. Snap! sells 1 box of plain popcorn for every 4 boxes of flavored popcorn. How many boxes of plain popcorn and how many boxes of flavored popcorn must Snap! sell each month to break even? Plain boxes Flavored boxesStep by Step Solution
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