o de capacity a ble to ting income bete corder 1. The Cotton Company manufactures siers and them 511 a po Vrati manufacturing costs $8.50 apa, and w e anaturing costs 225 a poh coept a one-time-only special order of 35.000 pair of a pow Coon wit incur any marketing costs are of the special order. What would the con could be accepted without affecting normal ) SO. D) STB.750 increase c) 5227.500 ord $36.210 in Show your calculations 2. The Chicago Company manufactures Part No 400 for introduction . The manufacturing cost per unit for 20,000 units of Part No 48 s as follows Click to see the manufacturing cost per unit) Read parts requirement 1. The Cotton Company manufactures slippers and sell them at $11 a pale Variable manufacturing costs 6.50 a pair, and allocated fixed manufacturing costs 52 25 a part has enough capacity valabito accept a one-time-only special order of 35.000 pairs of slippers at 58.75 a pair Cotton will not incur any marketing costs as a result of the special order. What would the effect on operating income of the special order could be accepted without affecting normale (a) SO. (b) 78.750 increase (c) 227.500 increase of (d) $306,250 increase? Show your calculations Begin by selecting the labels to calculate the effect on operating income and then aber in the supporting calculations units in special order Effect on operating income AAAAALA ows: bers and sells them at $11 a pair. Variable manufacturing cost is $6.30 a pall, UIT 000 pairs of slippers at $8.75 a pair. Cotton will not incur any marketing costs as a result of the special order. What Would Ne sales: (a) SO, (b) Space art No. 498 for use A Data Table er unit.) $ 7 38 post is $2.25 ap: at would the effe bers and sells them 000 pairs of slipper sales: (a) $0, (b) Direct materials Variable direct manufacturing labor Variable manufacturing overhead me effect on operati Fixed manufacturing overhead allocated Total manufacturing cost per unit The Pane Company has offered to sell 20,000 units of Part No. 498 to Chicago for $68 per unit. Chicago will make the decision to buy the part from Pane if there is an overall savings of at least $30,000 for Chicago. If Chicago accepts Pane's offer, $7 per unit of the fixed overhead allocated would be eliminated. Furthermore, Chicago has detetmined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. Print Print Done Done Der in the input fields and then click Check Answer. Clear All fost A Requirement at For Chicago to achieve an overall savings of $30,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $80,000, (b) $170,000, (C) $90,000 or (d) $220,000? Show your calculations. What other factors might Chicago consider before outsourcing to Pane? Print Done Ids and then click Check
