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Hollar. i Data Table Print Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): (Click the icon to
Hollar. i Data Table Print Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Print's operating income if it accepts this special order? Total costs for 80,000 units Direct materials $ 264.000 Complete the following incremental analysis to determine the impact on Print's operating income if it accepts this special order. (Roun Direct labor 36,000 Enter a "O for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating ince Variable manufacturing overhead 76.000 Total Order 110.000 Fixed manufacturing overhead Incremental Analysis of Special Sales Order Decision Per Unit ( (8,000 units) $ 486.000 Total manufacturing costs Revenue from special order Less variable expense associated with the order: Print Done Direct materials Direct labor Variable manufacturing overhead More Info Contribution margin Less: Additional fixed expenses associated with the order The company's relevant range extends to 33,000 units. Print has received a special order for 8,000 t-shirts at a special price of $42,000 for the entire order. The Increase (decrease) in operating income from the special order special order t-shirt would use a fabric that is less expensive than the standard fabric used by Print, which would allow Print to save $0.25 per t-shirt in direct Print accept the special sales order because it will V operating Income. materials when manufacturing this special order. Print has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order. Enter any number in the edit fields and then continue to the next question. Print Done
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