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Data Table Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead Total cost $2,150,000 Total fixed manufacturing overhead / 86,000 Pairs

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Data Table Direct materials Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead Total cost $2,150,000 Total fixed manufacturing overhead / 86,000 Pairs of sunglasses 37 25. 84 Print Done Super-Ban Sunglasses sell for about $154 per pair. Suppose that the company incurs the following average costs per pair: EEB Click the icon to view the cost information.) Super -Ban has enough idle capacity to accept a one-time-only special order from Montana Shades for 24,000 pairs of sunglasses at $74 per pair. Super - Ban will no incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Super-Ban's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Super-Ban's managers consider in deciding whether to accept the order? Prepare the analysis to determine the effect on operating income. (Enter decreases to profits with a parentheses or minus sign) Expected increase in revenues Expected increase in expenses Expected in operating income In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Super- Ban's managers consider in deciding whether to accept the order? Choose from any list or enter any number in the input fields and then continue to the next question. Super-Ban Sunglasses sell for about $154 per pair. Suppose that the company incurs the following average costs per pair EEB (Click the icon to view the cost information.) Super- Ban has enough idle capacity to accept a one-time-only special order from Montana Shades for 24,000 pairs of sunglasses at $74 per pair. Super-Ban wll incur any variable selling expenses for the order Read the requirements. In addition to the special order's effect on profits, what other Gonger Jerm qualitative)factors should Super -Ban's managers consider in deciding whether to accept the order? O A. Will loworing the sale price tarnish Super- Ban's image as a high-quality brand? O B. Will Super-Ban's other customers find out about the lower sale price Super-Ban offered to Montana Shades? Ifso, will these other customers demand lower sale prices? OC. How will Super -Ban's competitors react? Wal they retaliate by cutting thoe prioes and starting a price war? O D. All of the above O E. None of the above Requirement 2. Super- Ban's marketing manager, Peter Proston, arguos against accepting the special order because the offer price of $74 is less than Super-Ban's $84 cost to make the sunglassos. Preston asks you, as one of Super-Ban's staff accountants, to explain whether his analysis is correct. What would Choose from any list or enter any number in the input fields and then continue to the next question Super-Ban Sunglasses sell for about $154 per pair Suppose that the company incurs the EE (Click the icon to view the cost information Super-Ban has Read the requrements O D. Al of the above O E. None of the above folowing average costs per par enough ide capacity to acoept a one-time-only special order from Montana Shades for 24,000 pairs of sunglasses at $74 per pair: Super-Ban will not incur any variable seling expenses for the order Requirement 2. Super-Ban's markeling manager, Peter Preston, argues against accepting the special order because the offer price of $74 is less than Super-Ban's $34 cost to make the sunglasses Preston asks you, as one of Super-Ban's staff accountants, to explain whether his analysis is correct What would you say? When deciding whether to accept a special order, we should compare the Costs that we wi incur whether or not we fil the to our decision This is y comparing the S74 price Mortana Shades offered us wih our s84 total cost of raking the sungasses is twe accept The additional revenues and the additional costs that we will incur to fl the special crder are the Montana Shades special order, we will incur only $ per pair that Montana Shades offered Therefore, we shoudhe special order tohe company's operating income of additional cost pr pair, which is than tho $74 Choose trom any list or enter any number in the input fields and then continue to the next

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