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Print Products manufactures t-shirts. It has the following costs when its production level is 105,000 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 105,000 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 Per Unit (10,500 units) Incremental Analysis of Special Sales Order Decision 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 Print accept the special sales order because it will V operating income. - Data table Total costs for 105,000 units $ 325,500 21,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 68,250 80,000 $ 494,750 Total manufacturing costs I More info The company's relevant range extends to 120,500 units. Print has received a special order for 10,500 t-shirts at a special price of $49,875 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 $0.80 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
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