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Print Products manufactures t-shirts. It has the following costs when its production level is 110,000 units (t-shirts): (Click the icon to view the costs.) (Click
Print Products manufactures t-shirts. It has the following costs when its production level is 110,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Print's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Print'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 i Data Table Incremental Analysis of Special Sales Order Decision Per Unit (11,000 units) Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Direct materials Variable manufacturing overhead Direct labor Total costs for 110,000 units 385,000 55,000 110,000 170,000 720,000 Contribution margin Variable manufacturing overhead Less: Additional fixed expenses associated with the order Fixed manufacturing overhead Increase (decrease) in operating income from the special order Total manufacturing costs Print Done Print Products manufactures t-shirts. It has the following costs when its production level is 110,000 units (t-shirts): B (Click the icon to view the costs.) A (Click the icon to view additional information.) What will happen to Print's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Print'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 (11,000 units) Incremental Analysis of Special Sales Order Decision Per Unit * More Info Revenue from special order Less variable expense associated with the order: Direct materials Direct labor The company's relevant range extends to 126,000 units. Print has received a special order for 11,000 t-shirts at a special price of $57,750 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Print, which would allow Print to save $0.75 per t-shirt in direct materials when manufacturing this special order. Print has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order. Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Print Done Increase (decrease) in operating income from the special order
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