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Ludolph Industries has an annual plant capacity of 72,000 units, current production is 54.000 units per year. At the current production volume, the variable cost

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Ludolph Industries has an annual plant capacity of 72,000 units, current production is 54.000 units per year. At the current production volume, the variable cost per unit is $25.00 and the foxed cost per unit is $4.30. The normal selling price of Ludolph's product is $46.00 per unit. Ludolph has been asked by Dexter Company to fill a special order for 16.000 units of the product at a special sales price of $20.00 per unit. Dexter is located in a foreign country where Ludolph does not currently operate. Dexter wil 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 requirements Total Order Requirements Incremental Analysis of Special Sales Order Decision (16,000 units) Revenue from special order 1. How would accepting the special order impact Ludolph's operating income? Less expenses associated with the order: Should Ludolph accept the special order? Variable manufacturing cost 2. How would your analysis change if the special order sales price were to be $36.00 per unit and Ludolph would have to pay an attorney a fee of $19.000 Contribution margin to make sure it is complying with export laws and regulations relating to the special order? Less: Additional forced expenses associated with the order Increase (decrease) in operating income from the special order Print Done Enter any number in the edit fields and then click Check

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