Answered step by step
Verified Expert Solution
Question
1 Approved Answer
its together Opal Cole Sunglasses sell for about $162 per pair Suppose the company incurs the following average costs per pair (click the icon to
its together
Opal Cole Sunglasses sell for about $162 per pair Suppose the company incurs the following average costs per pair (click the icon to view the cout information Opal Cole has enough idle capacity to accept a one-time only special order from Montana Glasses for 18,000 pairs of sunglasses at 563 per pair. Opal Cole will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Opal Colo's operating incomo? In addition to the special order's effect on profits, what other longer-tum qualitative factors should Opal Cakes managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income. (Enter a "o" for any zero baloncesparentheses or a minus sign to indicate a decrease conting income from the special order) Total Order (18,000 units) Per Unit Incremental Analysis of Special Sales Order Decision Ravenue from social order Loss variable expense associated with the order Variable manufacturing costs Contribution margin Los Aditioned cases associated with the order Increase (decreason operating income from the special order Enter any number in the edit fields and then click Check Answer pa Check Air CA ecl Upal cules perduly CUME? In addition to the special order's effect on profits, what other ( ne order? pegi Data Table rde Direct materials $ $ 43 Direct labor 11 7 Variable manufacturing overhead Variable marketing expenses 3 25 je on Fixed manufacturing overhead $ 89 Total cost spel $2,200,000 total fixed manufacturing overhead / 88,000 pairs of sunglasses Print Done ck a Clear All Ul.) pt a one-time-only special order from Montana Glasses for 18,000 pairs of sunglasses at $63 per pair. Opal Cole will rder affect Opal Cole's operating income? In addition to the special order's effect on profits, what other (longer-term scept the order? BAILE sign * Requirements X 1. How would accepting the order affect Opal Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Opal Cole's managers consider in deciding whether to accept the order? 2. Opal Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $63 is less than Opal Cole's $89 cost to make the sunglasses. Revo asks you, as one of Opal Cole's staff accountants, to explain whether his analysis is correct. Print Done Print Done en click Score: UOL S8-9 (similar to) Question Help Storage Solutions produces plastic storage is for household storage needs. The company makes two sizes of bins Large (50 gallon) and Regular (35 galon Demand for the product is so high that The company can to many of oach size and it can produce. The same machinery is used to produce both stres. The machinery is available for only 3,400 hours per period. The company can produce Large tine every hour compared to 15 Regular bins in the same amount of time. Fixed expoentes amount to $105,000 per period. Sales prices and variable costs are as follows Tick on toew the cou) Which product should Storage Solutions emphasize? Why? 2. To maximize profits, how many of each bin should the company produce 3. Given this product is what will the company's operating income be? 1. Which product should Storage Solutions emphasize? Why? Complete the product mix analysis to determine which product Storage Soltore should emphase Storage Solutions Product Mix Analysis Regular Large Suspeo perunt Variable cout per un Contribuon main perunt Unos per machine hour Contribution margini per machine hour Entrary number in the edit fields and then click Check An Clear Al Check Answer 3 parts remaining Cord 0 Data Table Regular Large $ 8.00 $ 10.00 Sales price per unit Variable cost per unit $ 3.50 $ 4.20 Print Done Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started