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E8-20A (similar to) Question Help Raymond Industries has an annual plant capacity of 67,000 units; current production is 50,000 units per year. At the current

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E8-20A (similar to) Question Help Raymond Industries has an annual plant capacity of 67,000 units; current production is 50,000 units per year. At the current production volume, the variable cost per unit is $27.00 and the fixed cost per unit is $4.70. The normal selling price of Raymond's product is $43.00 per unit. Raymond has been asked by Dexter Company to fill a special order for 13,000 units of the product at a special sales price of $26.00 per unit. Dexter is located in a foreign country where Raymond does not currently operate. Dexter will market the units in its country under its own brand name, so the special order is not expected to have any effect on Raymond's regular sales. Read the requirements. Requirement 1. How would accepting the special order impact Raymond's operating income? Should Raymond accept the special order? Complete the following incremental analysis to determine the impact on Raymond's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and / or x - Requirements Increm Revenue from Less expenses Variable manuf 1. How would accepting the special order impact Raymond's operating income? Should Raymond accept the special order? 2. How would your analysis change if the special order sales price were to be $39.00 per unit and Raymond would have to pay an attorney a fee of $18,000 to make sure it is complying with export laws and regulations relating to the special order? Contribution ma Less: Additiona Increase (decre Print Done

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