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Please answer 1 and 2 Problem #3: Special Order The Amalfi Corporation makes decorative vases for discerning collectors. While there are many different types of
Please answer 1 and 2
Problem #3: Special Order The Amalfi Corporation makes decorative vases for discerning collectors. While there are many different types of vases, the manufacturing process is total selling price $3,320,000 direct material $1,230,000 $559,000 direct labor fixed manufacturing OH gross profit $729,000 $802,000 fixed SG&A $255,000 sales commissions $365,200 (% of price) gross profit $181,800 current sales and 19,200 production production 20,400 capacity One of Amalfi's long-term customers is an art dealer in NYC. This dealer has had a large order cancelled and wants to know if Amalfi can provide a special number of vases 2,400 for special order requested price $140.00 per vase one time design $22,500 costs for NYC (1) Calculate the CM for the special order. (2 points) price DM DL fixed manufacturing OH fixed SG&A sales commissions CM per unit (2) Calculate the profit or loss from accepting the special order in its entirety. Assume that Amalfi must reduce sales to current customers to stay under per unit total price DM DL fixed manufacturing OH fixed SG&A sales commissions one time design costs opportunity cost of lost sales profit/loss from special orderStep by Step Solution
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