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Orr Products manufactures t-shirts. It has the following costs when its production level is 100,000 units (t-shirtsy (Click the loon to view the costs.) (Click

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Orr Products manufactures t-shirts. It has the following costs when its production level is 100,000 units (t-shirtsy (Click the loon to view the costs.) (Click the icon to view additional information.) What will happen to Orr's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Orr's operating income if it accepts this special cont. (Round il per unit amounts to the nearest cent. $x XX, and all other amounts to the nearest whole dollar. Enter a "O" for any zero balances. Use parentheses or a minus sign to Indicate a decrease in contribution margin and/or operating income from the special order) Total Order Per Unit (10,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order TIMET i Data Table X Direct materials Direct labor Total costs for 100,000 units 320,000 40,000 85,000 120,000 Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $ 565,000 Print Done i More Info X The company's relevant range extends to 115,000 units. Orr has received a special order for 10,000 t-shirts at a special price of $50,000 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Orr, which would allow Orr to save $0.50 per t-shirt in direct materials when manufacturing this special order. Orr has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order. Print Done

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