dings. The following is the cost of each unit Materials Labor Variable overhead Fixed overheed ($1,945,000 per year; 105,000 units per year) Total $36.00 14.03 4.00 18.00 $72.00 Simpson Company has approached Andreasen with an offer to buy 8,100 thermostats at a price of $60 each The regular price is $100 Andreasen has the capacity to produce the 8,100 additional units without affecting its current production of 106.000 units Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $200 per unit material cost The labor cost of affixing the label will be the same as for the current models. The Simpson order wil also require a one time rental of packaging equipment for $32,000 Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year b. Do you agree with the decision to accept the special order? c. Considering only profil, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available Required A Required B Required Prepare a schedule to show the impact of filling the Simpson order on Andreason's profits for the year. (Enter your answers in thousands founded to I decimal place. (.e., 5,400,400 should be entered as 541004). Select option higher or lowej", keeping Status Quo as the base. Select none if there is no effect) (Al costs in thousands Dollars) Status Quo Alternative 100,000 Units 114,100 Units > fecum Sales revenue Less variable costs: Materials Labor Variable ovethead Total variable cost Contribution margin Loss Fixed costs Operating profit loss) C Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year. b. Do you agree with the decision to accept the special order? c. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available Completothis question by entering your answers in the tabs below. Required A Required B Required Do you agree with the decision to accept the spedal order? Yes ONO Required Required Che Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year. b. Do you agree with the decision to accept the special order? c. Considering only profit determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available Complete this question by entering your answers in the tabs below. Required A Required B Required Considering only profit determine the minimum quantity of thomosatsinthespedalorder that would make it profitable assuming capacity is available units
