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eBook Special Order Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at

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eBook Special Order Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 87,000 units but plans to product and sell only 65,000 in the coming year. The normal sales price is $16 par unit. Unit cost information is as follows: Direct materials $3.10 Direct labor 2.50 Variable overhead Fixed over 1.30 Total SH Suppose a customer wants to have its company logo affixed to each paperweight using a label Smooth Move would have to pur te a se logo labeling machine that will cost $12,000. The machine will be able to be the 15,000 units and then it will be scrapped (with no further value). No other fixed overhead activities will be incurred. In addition, each special togo requires additional direct materials of 80.20. Required: CONCEPTUAL CONNECTION: Should Smooth Move accept the special order? No By how much will profit increase or decrease if the order is accepted? If your answer is decrease enter negative value Decrease Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15.000 units at a per-unit pric of $7.00. The new customer is geographically separated from Smooth Move's other customers and existing sales will not be affected. Smooth Move normally produces 87,000 units but plans to produce and sell only 65,000 in the coming year. The normale price is $16 per unit. Unit cost Information is as follows: Direct materials $3.10 Direct labor 2.50 Variable overhead 1.15 Pred overhead 1.80 Total $8.55 Suppose customer wants to have its company logo affixed to each paperweight using a label, Smooth Move would have to purchase a special tage labeling machine that will cost $12,000. The machine will be able to label the 15,000 units and then it will be scrapped (with no further value). No other fixed overhead activities will be incurred. In addition, each special logo requires additional direct materials of $0.20. Required: CONCEPTUAL CONNECTION: Should Smooth Move accept the special order? Ne by how much will profit increase or decrease the order is accepted? If your answer is decrease enter negative value Dec

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