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Helix Company has been approached by a new customer to provide 2,100 units of its regular product at a special price of $7 per unit
Helix Company has been approached by a new customer to provide 2,100 units of its regular product at a special price of $7 per unit The regular selling price of the product is $9 per unit. Helix is operating at 80% of its capacity of 10.100 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fored manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a 50.60 per unit shipping cost. There will be no additional administrative expenses because of this order Calculate the operating income from the order Relevant Revenue (cost) per unit Relevant Not Relevant Costs) a Seling price b. Direct materials cost 7.001 1200) (2.00) (1.20) (0.801 c Direct labor cost d Variable manufacturing overhead e Fred manufacturing overhead 1. Regular seling expenses g. Additional Selling expenses h. Administrative expenses (0.60) (070) 2.100 Total operating income oss) from special order Based on financial considerations an d special price accept this onder at the
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