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Press Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): E (Click the icon to view the costs.)
Press Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): E (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Press's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Press's operating income if it accepts this special order. (Round all per unit amounts to the nearest cent, $X.XX, and all other amounts to the nearest whole dollar. 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.) Total Order (8,000 units) Incremental Analysis of Special Sales Order Decision Per Unit Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution marain Enter any number in the edit fields and then click Check Answer. S8-4 (similar to) | Question Help Data Table Press Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Press's operating income if it accepts this special order? Total Order (8,000 units) Incremental Analysis of Special Sales Order Decision Per Unit Direct materials Direct labor Variable manufacturing overhead Total costs for 80,000 units 216,000 28,000 80,000 80,000 Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Fixed manufacturing overhead 404,000 Total manufacturing costs $ Variable manufacturing overhead Contribution margin X i - More Info Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Enter any number in the edit fields and then click Check Answer. The company's relevant range extends to 93,000 units. Press has received a special order for 8,000 t-shirts at a special price of $38,000 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Press, which would allow Press to save $0.30 per t-shirt in direct materials when manufacturing this special order. Press has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order. part remaining Clear
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