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Ease Products manufactures t-shirts. It has the following costs when its production level is 110,000 units (t-shirts): (Click the icon to view additional information)
Ease Products manufactures t-shirts. It has the following costs when its production level is 110,000 units (t-shirts): (Click the icon to view additional information) K(Click the icon to view the costs.) What will happen to Ease's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Ease's operating income if it accepts this special order. (Round all per unit amounts to the nearest cent, $XXX, and all other amounts to the nearest whole dollar. Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (11,000 units) 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 special order Ease accept the special sales order because it will operating income
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