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Raymond Industries has an annual plant capacity of 69,000 units current production is 58,000 units per year. At the current production volumo, the variable cont
Raymond Industries has an annual plant capacity of 69,000 units current production is 58,000 units per year. At the current production volumo, the variable cont per unit is $32.00 and the fixed cost per unit is $3.90. The normal selling price of Raymond's product is $46.00 per unit. Raymond has been asked by Galvano Company to fill a special order for 7,000 units of the product at a special sales price of $29.00 per unit. Galvano is located in a foreign country where Raymond does not currently operato. Galvano will market the units in its country under its own brand name, so the special order is not expected to have any offect on Raymond's regular salos. Read the requirements Requirement 1. How would accepting the special order impact Raymond's operating incomo? Should Raymond accept the special order? The special order wilt Raymond's operating income by $ Thus, Raymond accept the special sales order Requirement 2. How would your analysis change the special order sales price were to be $41.00 per unit and Raymond would have to pay an attorney for of $16,000 to make sure it is complying with export laws and regulations relating to the special order? Under this new susumptions, the special order will Raymond's operating income by $ Thus, Raymond accept the special sales order Requirements wers Time 1. How would accepting the special order impact Raymond's operating income? Should Raymond accept the special order? 2. How would your analysis change if the special order sales price were to be $41.00 per unit and Raymond would have to pay an attomay a fee of $16,000 to make sure it is complying with export laws and regulations relating to the special order? Print Done Choose from any intor unter any numbers COMTOTO QUOm
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