Ludolph Indostries has an annwal plant capacty of 69.000 units; current production is 52.000 unis per year. Ar the current production volume, the variable cost por unit is 526.00 and the prodact an a special sales price of $2100 per unit Galvano is located in a loceign country where Ludelph does not currenty operate Gatvano will market the units in its country under ins com brand name, so the special order is not expecied to have any eflect on Ludolpit's regular sales Read the resulements rent production is 52,000 units per year. At the current production volume, the variable cost per unit is $26.00 and the fixed cost 47.00 per unit. Ludolph has been asked by Galvano Company to fill a special order for 15,000 units of the product at a special sales ere Ludolph does not currently operate. Galvano will market the units in its country under its own brand name, so the special order udolph's operating income? Should Ludolph accept the special order? pact on Ludolph's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use parentheses or a minus hg income from the special order.) Ludolph Industries has an annual plant capacity of 69,000 units; current production is 52,000 units per year. At the current production per unit is $480. The normal selling price of Ludolph's product is $47.00 per unit. Ludolph has been asked by Galvano Company to fill price of $21.00 per unit. Galvano is located in a foreign country where Ludolph does not currently operate. Galvano will market the unit is not expected to have any effect on Ludolph's regular sales Read the requirements: Requirement 1. How would accepting the special order impact Ludoiph's operating income? Should Ludolph accept the special order? Complete the following incremental analysis to determine the impact on Ludolph's operating income if it accepts this special order. (Enter a sign to indicate a decrease in contribution margin and/or operating income from the special order.) Requirements 1. How would accepting the spec Should Ludolph accept the spe 2. How would your analysis chan $4500 per unit and Ludolph we to make sure it is complying wit special order? Ludolph Industries has an annual plant capacity of 69,000 units; current production is 52,000 units per year. At the current production volume, the variable cost per unit is $26.00 and the fixed cost per unit is $4.80. The normal selling price of Ludolph's product is $47.00 per unit Ludolph has been asked by Galvano Company to fill a special order for 15,000 units of the product at a special sales price of $21.00 per unit. Galvano is located in a foreign country where Ludolph does not currently operate. Galvano will market the units in its country under its own brand name, so the special order is not expected to have any effect on Ludolph's regular sales. Read the eaviraments Requirement 1. How would accepting the special order impact Ludolph's operating income? Should Ludolph accept the special order? Complete the following incremental analysis to determine the impact on Ludolph's operating income if it accepts this special order (Enter a "0" for any zero balances. Use pacentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order) Incremental Analysis of Special Sales Order Decision Total Order (15.000 units) Revenue from special order Less expenses asspciated whith the order Less: Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order
