Saved Help 20 Materials Labor Variable overhead Fixed overhead ($1,899,000 per year; 105,500 units per year) Total $36.00 14.ee 4.00 18.00 $72.ee Simpson Company has approached Andreasen with an offer to buy 8,500 thermostats at a price of $60 each. The regular price is $100. Andreasen has the capacity to produce the 8,500 additional units without affecting its current production of 105,500 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2.00 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $32.800. nces Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year b. Do you agree with the decision to accept the special order? c. Considering only profit determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available. Complete this question by entering your answers in the tabs below. Bred Danke Bure Saved Help Save & Exit Submit 20 VIVUIHIN PINLOGUJJUHTy Cupucily UV Complete this question by entering your answers in the tabs below. Required A Required B Required c Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select op keeping Status Quo as the base. Select "none" if there is no effect.) (All Costs in Thousands of Dollars) Status Quo 105,500 Units Alternative 114,000 Units Difference Sales revenue Less variable costs: Materials Labor Variable overhead Total variable cost Contribution margin Less: Fixed costs Operating profit (loss) . Total Simpson Company has approached Andreasen with an offer to buy 8,500 thermostats at a price of $60 each. The regular price is $100. Andreasen has the capacity to produce the 8,500 additional units without affecting its current production of 105,500 units. Simpson requires that each unit use its branding, which requires a more expensive lahol re an additional $2.00 per unit material cost. The labor cost of affixing the laver will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $32,800. Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year b. Do you agree with the decision to accept the special order? C. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available. Complete this question by entering your answers in the tabs below. Required A Required B Required c Do you agree with the decision to accept the special order? Yes NO Simpson Company has approached Andreasen with an offer to buy 8,500 thermostats at a price of $60 each. The regular price is $100. Andreasen has the capacity to produce the 8,500 additional units without affecting its current production of 105,500 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2.00 per unit material cost. The labor cost of affixing the label same as for the current models. The Simpson order will also require a one-ume rental of packaging equipment for $32,800. Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen's profits for the year b. Do you agree with the decision to accept the special order? c. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available. rices Complete this question by entering your answers in the tabs below. Required A Required B Required Considering only profit, determine the minimum quantity of thermostats in the special order than assuming capacity is available. Quantity of thermostats units Required A Required C One of Rutkey's regular customers asked the company to fill a special order of 500 units at a selling price of $205 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concerned about selling at a price below the $2.80 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the impact of providing the special order of 500 units on Rutkey's profits in addition to the regular production and sales of 17,800 units per month b. Based solely on the data given, what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was accepted? es Complete this question by entering your answers in the tabs below. Required A Required B Required c If Rutkey Collectibles company was operating at capacity, what would happen to operating profit accepted? Increase Decrease No change
