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E11-23 (book/static) Question Help 1. The Cory Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $5.75 a pair, and
E11-23 (book/static) Question Help 1. The Cory Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $5.75 a pair, and allocated fixed manufacturing cost is $1.75 a pair. It has enough idle capacity available to accept a one-time-only special order of 25,000 pairs of slippers at $7.50 a pair. Cory will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) SO. (b) $43,750 increase. (C) $143,750 increase, or (d) $187,500 increase? Show your calculations 2. The Manchester Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit) Read part 2's requirement 1. The Cozy Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $5.75 a pair, and allocated fixed manufacturing cost is $1.75 a pair, it has enough idle capacity available to accept a one-time-only special order of 25,000 pairs of slippers at $7.50 a pair. Cozy will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) 80. (b) 543,750 increase, (C) 5143,750 increase, or (d) $187,500 increase? Show your calculations. Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Sales price per unit 7.50 Variable manufacturing cost per unit 5.75 Contribution margin per unit 1.75 x units in special order 43750 Effect on operating income
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