Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all parts Ironwood Company manufactures a variety of sunglasses. Production information for its most popular line, the Clear Vista (CV), follows: Sales price

please answer all parts
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Ironwood Company manufactures a variety of sunglasses. Production information for its most popular line, the Clear Vista (CV), follows: Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Per Unit $55.50 24.00 10.00 5.00 5.00 $44.00 Suppose that Ironwood has been approached about producing a special order for 3,200 units of custom CV sunglasses for a new semiprofessional volleyball league. All units in the special order would be produced in the league's signature colors with a specially designed logo emblem attached to the side of the glasses. The league has offered to pay $53.00 per unit in the special order. Additional costs for the special order total $5.00 per unit for mixing the special frame color and purchasing the emblem with the league's logo that will be attached to the glasses Required: 1. Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contribution margin Ironwood would make by accepting the special order. 2-a. Calculate the current contribution margin per unit. 2-b. Suppose Ironwood is currently operating its production facility at full capacity and accepting the special order would mean reducing production of its regular CV model. Should Ironwood accept the special order in this case? 3. Calculate the special order price per unit at which Ironwood is indifferent between accepting or rejecting the special order. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Reg 3 Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contribution margin Ironwood would make by accepting the special order. Additional CM Fixed manuracturing overneaa Total manufacturing coat 3.VU $44.00 Suppose that Ironwood has been approached about producing a special order for 3,200 units of custom CV sunglasses for a new semiprofessional volleyball league. All units in the special order would be produced in the league's signature colors with a specially designed logo emblem attached to the side of the glasses. The league has offered to pay $53.00 per unit in the special order. Additional costs for the special order total $5.00 per unit for mixing the special frame color and purchasing the emblem with the league's logo that will be attached to the glasses. Required: 1. Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contribution margin Ironwood would make by accepting the special order. 2-a. Calculate the current contribution margin per unit. 2-b. Suppose Ironwood is currently operating its production facility at full capacity and accepting the special order would mean reducing production of its regular CV model. Should Ironwood accept the special order in this case? 3. Calculate the special order price per unit at which Ironwood is indifferent between accepting or rejecting the special order. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3 Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contribution margin Ironwood would make by accepting the special order. Additional CM Reg Req 2A > rixea manuracturing overneaa Total manufacturing cost 5.UU $44.00 Suppose that Ironwood has been approached about producing a special order for 3,200 semiprofessional volleyball league. All units in the special order would be produced in th designed logo emblem attached to the side of the glasses. The league has offered to pa Additional costs for the special order total $5.00 per unit for mixing the special frame col league's logo that will be attached to the glasses. Required: 1. Assume Ironwood has the idle capacity necessary to accommodate the special order. Ironwood would make by accepting the special order. 2-a. Calculate the current contribution margin per unit. 2-b. Suppose Ironwood is currently operating its production facility at full capacity and a reducing production of its regular CV model. Should Ironwood accept the special order 3. Calculate the special order price per unit at which Ironwood is indifferent between ac Complete this question by entering your answers in the tabs below. Reg 1 Req2A Req 2B Reg 3 Calculate the current contribution margin per unit. (Round your answer to 2 decimal places Current CM per Unit rixea manuracturing overneau Total manufacturing cost 3.UU $44.00 Suppose that Ironwood has been approached about producing a special order for 3,200 units of custom CV sunglasses for an semiprofessional volleyball league. All units in the special order would be produced in the league's signature colors with a spe designed logo emblem attached to the side of the glasses. The league has offered to pay $53.00 per unit in the special order. Additional costs for the special order total $5.00 per unit for mixing the special frame color and purchasing the emblem with th league's logo that will be attached to the glasses. Required: 1. Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contribution Ironwood would make by accepting the special order. 2-a. Calculate the current contribution margin per unit. 2-b. Suppose Ironwood is currently operating its production facility at full capacity and accepting the special order would mea reducing production of its regular CV model. Should Ironwood accept the special order in this case? 3. Calculate the special order price per unit at which Ironwood is indifferent between accepting or rejecting the special order. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Rep 3 Calculate the special order price per unit at which Ironwood is indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.) Special-Order Price per Unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations And Evolutions

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

10th Edition

1618533533, 9781618533531

More Books

Students also viewed these Accounting questions

Question

When can Wifi and bluetooth can be used with TPED

Answered: 1 week ago

Question

What are the steps that the EEOC uses once a charge is filed?

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago