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Question Help Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin income statement for the month ended January 31, 2018, contains
Question Help Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin income statement for the month ended January 31, 2018, contains the following data: (Click the icon to view the cost information.) Suppose Rafter wishes to buy 4,500 vests from Aqua Fun Aqua Fun will not incur any vanable selling and administrative expenses on the special ordet The Aqua Fun plant has enough unused capacity to manufacture the additional vests. Rafter has offered $12 per vest, which is below the normal sales price of $16 Read the requirements Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Aqua Fun's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirement 2. Prepare a differential analysis to determine whether Aqua Fun should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign) in operating income Decision Requirement 3. Identify long-term factors Aqua Fun should consider in deciding whether to accept the special sales order In addition to determining the special order's effect on operating profits, Aqua Fun's managers also should consider the following O A. Will the special order customer come back again and again, asking for the same reduced price? OB. Will Aqua Fun's other customers find out about the lower sale price Aqua Fun accepted from Rafter? If so, will these other customers demand lower sale prices? OC. How will Aqua Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? OD. All of the above OE. None of the above Choose from any list or enter any number in the input fields and then continue to the next question 12000 6000 crc 19. The company begins manufacturing wood chairs to match the tables Chairs self for $50 each and have vanable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs Calculate the breakeven point in units for each product First, complete the table below to calculate the weighted average contribution margin (Round the weighted average contribution margin per unit to the nearest cont.) Total 9 Tables 100 40 Chairs 50 Soc chro 30 Sales price per unit Variable cost per unit Contribution margin per unit Sales mix in units 60 20 1 4 60 80 140 sea Contribution margin Weighted average contribution margin per unit 28 notte Next, calculate the breakeven point in units for the package of products one table and 4 chairs. Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM = contribution margin. Complete all answer boxes. For items with a zero value, entero Round the breakeven point-the required sales in units-up to the nearest whole unit. For example. 245 25 would be rounded to 246.) Fixed costs Target profit Weighted ang CM per unit = Required sales in units 7000 0 ) 28 250 + + Micre Finally, calculate the breakeven point in units for each product. (Round the breakeven point--the required sales in units-up to the nearest whole unit. For example. 245.25 would be Tounded to 246) Breakeven in units for the package Proportion of the sales mix Breakeven sales of units Table 250 x 1/4 62.5 Chairs 250 4/5 20 W Stand del Choose from any list or enter any number in the input fields and then continue to the next question Type here to search O BE e Question Help Aqua Fun manufactures flotation vests in Charleston, South Carolina. Aqua Fun's contribution margin income statement for the month ended January 31, 2018, contains the following data: (Click the icon to view the cost information.) Suppose Rafter wishes to buy 4,500 vests from Aqua Fun Aqua Fun will not incur any vanable selling and administrative expenses on the special ordet The Aqua Fun plant has enough unused capacity to manufacture the additional vests. Rafter has offered $12 per vest, which is below the normal sales price of $16 Read the requirements Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Aqua Fun's decision Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirement 2. Prepare a differential analysis to determine whether Aqua Fun should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign) in operating income Decision Requirement 3. Identify long-term factors Aqua Fun should consider in deciding whether to accept the special sales order In addition to determining the special order's effect on operating profits, Aqua Fun's managers also should consider the following O A. Will the special order customer come back again and again, asking for the same reduced price? OB. Will Aqua Fun's other customers find out about the lower sale price Aqua Fun accepted from Rafter? If so, will these other customers demand lower sale prices? OC. How will Aqua Fun's competitors react? Will they retaliate by cutting their prices and starting a price war? OD. All of the above OE. None of the above Choose from any list or enter any number in the input fields and then continue to the next question 12000 6000 crc 19. The company begins manufacturing wood chairs to match the tables Chairs self for $50 each and have vanable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs Calculate the breakeven point in units for each product First, complete the table below to calculate the weighted average contribution margin (Round the weighted average contribution margin per unit to the nearest cont.) Total 9 Tables 100 40 Chairs 50 Soc chro 30 Sales price per unit Variable cost per unit Contribution margin per unit Sales mix in units 60 20 1 4 60 80 140 sea Contribution margin Weighted average contribution margin per unit 28 notte Next, calculate the breakeven point in units for the package of products one table and 4 chairs. Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM = contribution margin. Complete all answer boxes. For items with a zero value, entero Round the breakeven point-the required sales in units-up to the nearest whole unit. For example. 245 25 would be rounded to 246.) Fixed costs Target profit Weighted ang CM per unit = Required sales in units 7000 0 ) 28 250 + + Micre Finally, calculate the breakeven point in units for each product. (Round the breakeven point--the required sales in units-up to the nearest whole unit. For example. 245.25 would be Tounded to 246) Breakeven in units for the package Proportion of the sales mix Breakeven sales of units Table 250 x 1/4 62.5 Chairs 250 4/5 20 W Stand del Choose from any list or enter any number in the input fields and then continue to the next question Type here to search O BE e
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