Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Data Table 1 Marine Supply Contribution Margin Income Statement (Variable Costing) For Sales Volume of 31,000 Units Total s465,000 Sales revenue Less variable expenses: 86,000
Data Table 1 Marine Supply Contribution Margin Income Statement (Variable Costing) For Sales Volume of 31,000 Units Total s465,000 Sales revenue Less variable expenses: 86,000 110,000 Variable manufacturing costs (DM, DL, Variable MOH) Variable operating expenses (selling and administrative) 169,000 Contribution margin Less fixed expenses: 127,000 95,000 (53,000) Fixed manufacturing overhead Fixed operating expenses (selling and administrative) Operating income (loss) Print Done Marine Supply manufactures flotation vests in Newark, New Jersey. Marine Supply's contribution margin income statement for the most recent month contains the following data (click the icon to view the cost information.) Suppose Boats-n- More Cruiselines wants to buy 4,800 vests from Marine Supply. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect fixed expenses. The Marine Supply plant has enough unused capacity to manufacture the additional vests. Boats-n- More Cruiselines has offered $11 per vest, which is below the normal sale price of $15 Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Marine Supply should accept this special sales order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a negative contribution margin and/or a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (4,800 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started