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please help me solve all the requirements Ludolph Industries has an annual plant capacity or 69,000 units; current production is 58,000 units per year, At
please help me solve all the requirements
Ludolph Industries has an annual plant capacity or 69,000 units; current production is 58,000 units per year, At the current production volume, the variable cos per unit is $27.00 and the fixed cost per unit is $4.60. The normal selling price of Ludolph's product is $48.00 per unit. Ludolph has been asked by Bramwall Company to fill a special order for 8,000 units of the product at a special sales price of $21.00 per unit. Bramwall is located in a foraign country where Ludolph does not currently operate. Bramwall will market the units in its country under its own brand name, so the special order is not expected to have any effect on Ludolph's regular sales. Read the requirements: Requirement 1. How would accepting the special order impact Ludolph's operating income? Should Ludolph accept the special order? Complete the following incremental analysis to determine the impect on Ludolph's operating income if it accepts this special order. (Enter a " 0 for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Requirements 1. How would accepting the special order impact Ludolph's operating income? Should Ludolph accept the special order? 2. How would your anatysis change if the special order sales price were to be $45.00 per unit and Ludolph would have to pay an attomey a fee of $10,000 to make sure it is complying with export laws and regulations relating to the special order Step by Step Solution
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