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Consider the following details of the content of the Mand Pen Company (MPC) for the year ended December 200 Click the icon to wow the
Consider the following details of the content of the Mand Pen Company (MPC) for the year ended December 200 Click the icon to wow the income MPC's fred manufacturing costs were 53 million and its feeling and core 53 million to dedin saling and The Grenad produced and opens Click the view Woman from Hely Read the Special Order Units Gan Los expenses Menacturing Selling and admitive Total valabile pe Carmen Lussop Man come G D E H Consider the following details of the income statement of the Madrid Pen Company (MPC) for the year ended Dec 31,20x0 Sales $16,500,000 Less COGS $9,450,000 Gross margin or gross profit $7,050,000 Less selling and administrative expenses $4,350,000 Operating Income $2.700.000 MPC's fixed manufacturing costs were $3.6 million and its fixed selling and administrative costs were $9.3 million. 0 Sales commissions of 3% of sales are included in selling and administrative expenses. The division had produced and sold 13 million pens. 2 3 Requirements: 4 1. Using the contribution-margin technique, prepare an analysis Use four columns without the special order, the effect of the special order (one column total and one column per unit), and totals with the special order 5 | 2. By what percentage would operating income increase or decrease if the order had been accepted? Do you agree with the president's decision? Why? 16 18 19 Without Special order 20 Units ? 21 Sales 2 22 Less variable expenses: 2 23 Manufacturing ? 24 Selling and administrative 7 25 Total variable expenses ? 26 Contribution margin 2 ? 27 Less fixed expenses 7 28 Selling and administrative 29 Total fixed expenses ? 2 30 Operating Income 21
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