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Please answer 2. Alpine produces a single product. The company's March 2018 income statement is as follows: Sales (600 x $60) $36,000 Cost of goods
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2. Alpine produces a single product. The company's March 2018 income statement is as follows: Sales (600 x $60) $36,000 Cost of goods sold - 33,000 Gross profit $ 3,000 Selling and administrative 2,000 Net income $ 1,000 There was no beginning or ending inventory of work-in-process or of finished goods. Alpine's full manufacturing costs were as follows: Direct materials (600 units x $10) $ 6,000 Direct labor (600 units x $16) 9,600 Variable manufacturing overhead (600 units x $9) 5,400 Fixed manufacturing overhead 12,000 Total $33,000 Average cost per unit $55 Selling and administrative expenses are all fixed. Alpine just received a special order from a firm in Canada to purchase 450 units at $55 each. The order will not affect the selling price to regular customers. Required: a. Prepare a differential analysis of the relevant costs and revenues associated with the decision to accept or reject the special order assuming there is spare capacity? b. What else might Alpine consider relevant to its decision, for instance if you do not make the assumptions you used in part aStep by Step Solution
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