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Chapter 7 Comprehensive Do It!, Walston Company produces kitchen cabinets for homebuilders across western Canada. The cost of producing 5,000 cabinets is as follows:
Chapter 7 Comprehensive Do It!, Walston Company produces kitchen cabinets for homebuilders across western Canada. The cost of producing 5,000 cabinets is as follows: Materials Labour Variable Overhead $ 500,000 250,000 100,000 Walston also incurs selling expenses of 1,000 Fixed Overhead Total $20 per cabinet. for a special order of Walston's current sales. Selling expenses per cabinet would be only 400,000 $1,250,000 Wellington Corp. has offered Walston $165 per cabinet cabinets. The cabinets would be sold to homebuilders in eastern Canada and thus would not conflict with per cabinet. Walston has available capacity to do the work. $5 Instructions: (a) Prepare an incremental analysis for the special order. Relevant costs per unit would be: Title Title Title Title Total relevant costs per unit Reject Order Accept Order Title Amount Amount Title Amount Amount Net Income Formula Formula (b) Should Walston accept the special order? Why or why not? Amount Amount Amount Amount Formula Net Income Increase (Decrease) Amount Amount Formula
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