Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,200 of the US umbrellas at a price of $18 each, Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost Regular sales price $ 8.00 4.00 4.50 2.50 $19.00 $26.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 2,700 umbrellas for $15.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. 4. Assure that Mohave is operating at full capacity, Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the incremental profit (or loss) from accepting the special order. Profit (or Logo) Inoroase (by S 7.000 Direct materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Total cost Regular male price $ 8.00 4.00 4.50 2.50 $19.00 $26.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 2,700 umbrelles for $15.00 each. Recompute the incremental profit for loss) from accepting the special order under this scenario. 4. Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order. Answer is not complete. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Should Mohave accept the special order? Yes No POON 1 of 4 !!! Next > VORLDUDULLUELE UVE Fixed manufacturing overhead Total coat Regular sales price . 2.50 $19.00 $26.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 2.700 umbrellas for $15.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. 4. Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that the special order had been to purchase 2,700 umbrellas for $15.00 each. Recompute the incremental profit or loss) from accepting the special order under this scenario. Profit (or Loss Decreases by Required 2 Required 4 > VELGE BOLLEN OVER Fixed manufacturing overhead Total cont Regular sales price 9.50 2.50 $19.00 $26.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 2,700 umbrellas for $15.00 each. Recompute the incremental profit (or los from accepting the special order under this scenario, 4. Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferen between accepting or rejecting the special order. Answer is not complete. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order. Special Order Price 23 per Unit
