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Current Designs faces a number of important decisions that require incremental analysis. Recently. Mike Cichanowski, owner and CEO of Current Designs, received a phone call

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Current Designs faces a number of important decisions that require incremental analysis. Recently. Mike Cichanowski, owner and CEO of Current Designs, received a phone call from the president of a brewing compary. He was calling to inquire about the possibility of Current Designs producing "floating coolers" for a promotion his company was planning These coolers resemble kayaks but are about one-third the size. They are used to float food and beverages while paddling down the river on a weckend leisure trip. The company would be interested in purchasing 100 coolers for the upcoming summer. It is willing to pay $260 per cooler. The brewing company would pick up the coolers upon completion of the order. Mike met with Diane Buswell, controller, to identify how much it would cost Current Designs to produce the coolers, After careful analysis, the following costs were identified. Current Designs would be able to modify an existing mold to produce the coolers. The cost of these modifications would be approximately $3,100. Current Designs has sufficient capacity to produce the special order without impacting current operations. (a) Prepare an incremental analysis to determine whether Current Designs should accept this special order to produce the coolera. (Enter decrease in net income then enter with a negotive sign preceding the number or parenthesis es, 15,000 or (15,000d) Mike met with Diane Buswell, controller, to identify how mach it would cost Current Designs to produce the coolers, After careful anslysis, the following costs were identified. Current Designs would be able to modify an eisting mold to produce the coolers. The cost of these modifications would be approximately 33,100 . Current Designs has sufficient capacity to produce the special order without impacting current operations. (a) Prepare an incremental analysis to determine whether Curcent Designs should accept this special order to produce the coolers. (Enter decrease in net income then enter with a negotive sign preceding the number or porentheds es, 15,000 or (15,000)] Current Designs should the order based on the incremental anaysis

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