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Relax Products manufactures t-shirts. It has the following costs when its production level is 105,000 units (t-shirts): What will happen to Relax's operating income if

Relax Products manufactures t-shirts. It has the following costs when its production level is 105,000 units (t-shirts): What will happen to Relax's operating income if it accepts this special order?

Complete the following incremental analysis to determine the impact on Relax'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.)

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More Info The company's relevant range extends to 126,000 units. Relax has received a special order for 11,000 t-shirts at a special price of S74,250 for the entire order The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Relax, which would allow Relax to save S0.75 per t-shirt in direct materials when manufacturing this special order. Relax has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order Print Done omplete the follo ng inc mental anal is to dete mne the impa on Rea s operati in nme i it a E his special r er Round al per unit amounts to the ne est o n balances Use parentheses or a minus sign to indicate a decrease in contribution margin andlor operating income trom the special order.) x x and other amounts to the nearest who e do r nter a to a zero Total Order Incremental Analysis of Special Sales Order Decision Per Unit11,000 units) 5.6 Reveriue from special order Less variable expense associated with the order Direct materials Direct labor Variable manufacturing overhead Contribution margin Less. Additional fixed expenses associaled wilh the order Increase (dacrease) in operating income from the special order

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