Mazeppa Corporation sells relays at a selling price of $28 per untt. The company's cost per unit, based on full capacity of 160,000 units, Is as follows $ 6 Direct materials Direct labor overhead (2/3 of which is variable) Mazeppa has been approached by a distributor In Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will Incur an additional shipping cost of $2 for each relay it sells to the distributor a-1. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an Increase In operating Income of $2 per unit? e-2. What is your interpretation of the changes to the contribution margin per unit and the operating Income on account of the Increase In selling price? b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor which will generate an Increase in operating Income of $60,000 more than It would be without accepting the special order? b-2. What is your Interpretation of the changes to the contribution margin per unit and the operating Income on account of the unit price charged to the distributor? Complete this question by entering your answers in the tabs below Req Al Req A2 Req B1 Req B2 Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit? Special Sale Selling price Less: Direct materials Direct labor Variable overhead Additional shipping costs Contribution margin per unit Req A2> Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? At a current operating level of 100,000 units, the company will not have to turn away any of its regular customers in order to fill the special order. If it wishes to increase operating income by unit included in the special order, it only needs to generate a Thus, the selling price per unit included in the special order is per margin per unit of Req A1 Req B1 Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 Mazeppa units, is as follows Direct materials Direct labor overhead (2/3 of which is variable) Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay It sells to the distributor a-1. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit? a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the Increase in selling price? b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor which will generate an Increase in operating income of $60,000 more than It would be without accepting the special order? b-2. What is your Interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? Complete this question by entering your answers in the tabs below. Req A Req A2 Req 81 Req 82 Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $60,000 more than it would be without accepting the special order? Selling prioe Less Direct materials Direct labor Variable overhead Additional shipping costs Contribution margin per unit Req A2 Req B2> Mazeppa Corporation sells relays at a selling prnce of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows: Direct materials Direct labor Overhead (2/3 of which is variable) s 6 Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, It will incur an additional shipping cost of $2 for each relay it sells to the distributor a-1. Assume that Mazeppa is currently operating at a level of 100.000 units. Show the calculation for the unit price to charge the distributor which will generate an Increase in operating income of $2 per unit? 8-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the Increase In selling price? b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor which will generate an Increase in operating Income of $60,000 more than it would be without accepting the special order? b-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? by entering your answers in the tabs below Req A1 Req AZ Req 8 Req 82 What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? n order for the company to increase its operating income $60,000 above what t would be without the order, the contribution margin per unit included with the special order must be $2 per unit more (52 x 30,000 units- 560,000) than the normal contribution margin. The normal all variable costs [ margin is the sales price, $28, less or $12. Thus, the selling price of the order must cover the additional shipping costs, and stil result in a contribution margin of normali $2 additional requirement) Therefore, a selling price of
