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Pharoah Company manufactures toasters. For the first 8 months of 2022 , the company reported the following operating results while operating at 75% of plant
Pharoah Company manufactures toasters. For the first 8 months of 2022 , the company reported the following operating results while operating at 75% of plant capacity: Cost of goods sold was 70% varlable and 30x fixed; operating expenses were 80% variable and 20% fixed. In September, Pharoah receives a special order for 18.300 toasters at $7.67 each from Luna Company of Cludad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in foed costs. (a) Prepare an incremental analysis for the special order, (Round computations for per unit cost to 2 decimol places, es. 1525 and all other computations ond final answers to the nearest whole dolliar, eg. 5,725. Enter neas tive anounts usirg either o negotive sign preceding the. number eg. 45 or parentheses eg. (45)J (b) Should Pharoahaccept the special order? Pharosh cempany the special order Wildhorse Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y.Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,002,000 Y.Go undergarments a year. The per unit and the total costs for an individual garment when the compary operates at full capacity are as follows. The U.S. Army has approached Wildhorse Fiber and expressed an interest in purchasing 250,200 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materiak, direct labor, and variable manufacturing overhe ad costs, In addition, the Army has agreed to pay an additional $1.09 per undergarment to cover all other costs and provide a profit. Presently, Wildhorse Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Wildhorse Fiber accepts the Army's otfer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Wildhorse Fiber. (Enter negative amounts using elther hegotive sign preceding the number eg. 45 or parentheses eg. (45)) Thauld Widionse Fiber accept the Armiy's atiter? Widtharse Fiter whould
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