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Orr Products manufactures t-shirts. It has the following costs when its production level is 100,000 units (t-shirts): (Click the icon to view the costs.) (Click
Orr Products manufactures t-shirts. It has the following costs when its production level is 100,000 units (t-shirts): (Click the icon 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? Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Per Unit (10,000 units) $ 5.00 $ 50,000 Direct materials 3.26 32600 5404 Direct labor .47 10000 Variable manufacturing overhead Contribution margin 10000 0 Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order 10000 Enter any number in the edit fields and then click Check Answer r Products manufactures t shirts. It has the following costs when its production level is 100,000 units t-shirts!: (Click hat will i - X Data Table In s) 000 0 More Info - X evenue Total costs for 100,000 units 255 vari Direct materials $ 320,000 600 rect ma Direct labor 40,000 rect la 404 Variable manufacturing overhead Fixed manufacturing overhead 85.000 120,000 000 ariable 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. ontribut $ 565,000 000 Total manufacturing costs 0 SS: Ad 000 crease Print Done Print Done er any number in the edit fields and then click Check Answer. Activate Windows tatti
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