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Data table Total costs for 3,000 units Direct materials S Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 211500 37500 52500 130300
Data table Total costs for 3,000 units Direct materials S Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 211500 37500 52500 130300 437500 .@ More info The company's relevant range extends to 8T,500 units. Relax has received a special order for 7,500 t-shirts at a special price of $39,375 for the entire order. The special order tshirt would use a fabric that is less expensive than the standard fabric used by Relax, which would allow Relax to save $0.30 per t-shirt in direct materials when manufacturing this special order. Relax has the excess capacity to manufacture this special order. its total fixed costs will not be impacted by the special order. .@ Relax Products manufactures tshirts. It has the following costs when its production level is T5300 units {t-shirts): g {Click the icon to View the costs.) View additional information.) 0 {Click the icon to What will happen to Relax's operating income if it accepts this special order? Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase {decrease} in operating income from the snecial order Total Order Per Unit {7,500 units] :l: j: j: E; g: E _
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