Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELP PLEAe ALL PARTS The Cool Can Company manufactures drink kookies and has been approsched by a new customer with an effer to purchase is,000

HELP PLEAe ALL PARTS
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Cool Can Company manufactures drink kookies and has been approsched by a new customer with an effer to purchase is,000 units at a per-unit price of $7.60. The new customer is peographicaly However, astume that Cool Can plans to produce and sel 70,000 unas in the coming year (rother than the originaly andiciouted 65,000 unts). Required: 1. Uving Eroel (or some outer sorebditert softwabe tool), calculate the ameunt by which total operathg income increases or decreases if the order is accepted. 2. Conceptual Connection Should Cool Can accept the special arder when sies at the regular price are expected to be 70,000 unts? Increases or becreases it the corder is accepted 4. Should Coal cas accepe the special erster wi devoribed in Hiequiremes 37 raving a siptadihert wach formulas embedded to capture ter variour reiativeir quichy ans eaulf obierve the resuling change in The Cool Can Company manufactures drink koozies and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit p separated from Cool Can's other customers, and existing sales will not be affected. Cool Can normally produces 82,000 units but plans to produce and is $12 per unit. Unit cost information is as follows: However, assume that Cool Can plans to produce and sell 70,000 units in the coming year (rather than the originally anticipated 65,000 units). Required: 1. Using Excel (or some other spreadsheet software tool), calculate the amount by which total operating income increases or decreases if the order is acc s 2. Conceptual Connection: Should Cool Can accept the special order when sales at the regular price are expected to be 70,000 units? 3. Now assume that all direct variable costs are 20% higher and all indirect costs are 40% higher than originally stated in the set up box. These cost increa Finally, assume the new customer has offered to increase its price to $10.00 (from the $7.00 originally stated in the set up box). Using your spreadsheet, ca increases or decreases if the order is accepted. s 4. Should Cool Can accept the special order as described in Requirement 3? 5. Explain the specific changes you made to your spreadsheet (from Requirement 1) to accommodate these cost and price increases (in Requirement 3). Brie spreadsheet, including formulas, might be beneficial to your ability to conduct various types of data analytics. (Refer to Exhibit 2-2) Having a spreadsheet with formulas embedded to capture the various relatively quickly and easly observe the resulting change in proached 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 be affected. Cool Can normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price ts in the coming year (rather than the originally anticipated 65,000 units). the amount by which total operating income increases or decreases if the order is accepted. When sales at the regular price are expected to be 70,000 units? indirect costs are 40% higher than originally stated in the set up box. These cost increases apply to both normal and special-order units. $10.00 (from the $7.00 originally stated in the set up box). Using your spreadsheet, calculate the amount by which total operating income ment 3? Requirement 1) to accommodate these cost and price increases (in Requirement 3). Briefly explain how taking the time to build your conduct various types of data analytics. (Refer to Exhibit 2-2) costs and revenues allows the decision maker to enter changes to any or all of these relevant decision inputs and The Cool Can Compamy manufactures drink koozies and has been approwched by to new customer with an effer to purchase 15,000 uniks at a per-unit price of $7.00. The new customer in geographically separated from Cool Can's other castomers, and existing sales wit not be affected, Cool Can normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year, The mormal sales price is $12 per unt, Unit cost infocmation is as follows: However, assume that Cool Can plans to produce and sell 70,000 unies in the coming year frather than the originally antiopated 65,000 units). Required: 1. Using Excel (or some other spreadsheet software tool), cakculate the amount br which total operaing income increases or decreased if the order is accepted. 2. Conceptual Connections Should Cool Can accept the special order when sales at the regular price are expected to be 70,000 unts? increases co decreases if the order is accepted 4. Should Cool Can accept the special order as described in kequrement 37 5. Explain the ipeccific chanpes you made to your spreedshert (from decuirenent 1) to accommodate these cost and price increases (in kequirement 3 ). Ariefir explan now tading the time to buld yeur spreadsheet, indudimg formulas, might be benefioat to your abiliy to conduct variows types of data analytics. (Refer to tafibt 2.2) Having a spreacuhest with formulas embedded to capture the various costs and reveves allows the decision maker to eher changes to any or at of theie reievant secision inoves and relatively ouicbland easily observe the resulting change in

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Manual For Auditors

Authors: Lawrence Robert Dicksee

1st Edition

1360462546, 978-1360462547

More Books

Students also viewed these Accounting questions

Question

9.7 List and briefly discuss four management development methods.

Answered: 1 week ago