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Press Products manufactures t-shirts. It has the following costs when its production level is 90,000 units (t-shirts): Ell (Click the icon to view the costs)
Press Products manufactures t-shirts. It has the following costs when its production level is 90,000 units (t-shirts): Ell (Click the icon to view the costs) What will happen to Press's operating income if it accepts this special order? (Click the icon to view additional information.) 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 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 Data Table Incremental Analysis of Special Sales Order Decision Per Unit (9,000 units) Revenue from special order Less variable expense associated with the order Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Total costs for 90,000 units Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 333,000 63,000 90,000 150,000 636,000 Total manufacturing costs More Info The company's relevant range extends to 104,000 units. Press has received a special order for 9,000 t-shirts at a special price of $42,750 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 Enter any number in the edit fields and then click Check Answer. special order. Its total fixed costs will not be impacted by the part Clear All
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