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help Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufocturing fiems in the area. The following is the forecssted income
help Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufocturing fiems in the area. The following is the forecssted income statement for the next quarter, which is the typical planning horlzon used at RTD. RTD expects fo sell 56,000 units during the quartet. RTD catries no inventories. Floed costs included in this income statement are $364,000 for depreciation on plam and machinery and miscelaneous factory operations and $100,000 for administrative costs. RTD has recelved a request for 10,000 fitsings to be produced in the next quarter from Endicott Manufacturing Endicott has never purchased from RTD, although they have been a local company for many yeart. Endicott has offered to pay $2110 per unit. RTD can easly produce the 10.000 units with its exiating capacify. Production of the to, 000 units will incur all variable manufacturing costs but no floed manufecturing costs. No administrative costs will be incurred because of the ordet. Required: a. What impact would accepting this special order have on operating profit? b. Should RTD accept the order? Complete this question by entering your answers in the tabs below. What impact would sccepting this specal onder hwo on operatng profict (Enter vour answers in thousands rounded to 1 dedimal puce. (1.e., 5,400,400 should be entered as 5,400.4), Select option "higher" or "lower", keeping status Que as the base. Select thone if there is no nffect)
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