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please show your math McKnight Sunglasses sell for about $195 per pair. Suppose the company incurs the following average costs per pair: Direct materials.. $40
please show your math
McKnight Sunglasses sell for about $195 per pair. Suppose the company incurs the following average costs per pair: Direct materials.. $40 Direct labour. 13 Variable manufacturing overhead. 6 Variable marketing expenses. 4 Fixed manufacturing overhead. 20 Total cost $83 * $2,200,000 total fixed manufacturing overhead / 110,000 pairs of sunglasses Question: 1. How would accepting the order affect Mcknight's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative factors should McKnight's managers consider in deciding whether accept the order? 2. McKnight's marketing manager, Jim Reve, argues against accepting the special order because the offer price of $71 is less than Mcknight's $83 cost to make the sunglasses. Revo asks you, as one of McKnight's staff accountants, to write a memo explaining whether his analysis is correct Rally Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing cost Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Enter any number in the edit fields and then click Check Answer. parts McKnight Sunglasses sell for about $195 per pair. Suppose the company incurs the following average costs per pair: Direct materials.. $40 Direct labour. 13 Variable manufacturing overhead. 6 Variable marketing expenses. 4 Fixed manufacturing overhead. 20 Total cost $83 * $2,200,000 total fixed manufacturing overhead / 110,000 pairs of sunglasses Question: 1. How would accepting the order affect Mcknight's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative factors should McKnight's managers consider in deciding whether accept the order? 2. McKnight's marketing manager, Jim Reve, argues against accepting the special order because the offer price of $71 is less than Mcknight's $83 cost to make the sunglasses. Revo asks you, as one of McKnight's staff accountants, to write a memo explaining whether his analysis is correct Rally Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing cost Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Enter any number in the edit fields and then click Check Answer. partsStep by Step Solution
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