Requlred information Problem 11-32 (Algo) Special Order [LO 11-2, 11-8] [The following Information applles to the questions displayed below.] Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month; current monthly production is 7,880 medals. The company normally charges $320 per medal. Varlable costs and fixed costs for the current activity level follow: Award Plus has just recelved a special one-time order for 2,120 medals at $210 per medal. For this particular order, no varlable marketing costs will be Incurred. Cathy Senna, a management accountant with Award Plus, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Senna suggested to her supervisor, Gerard LePenn, who is the controller, that they request compettitve bids from vendors for the raw materlals because the current quote seems high. LePenn insisted that the prices are In IIne with those of other vendors and told her that she was not to discuss her observations with anyone else. Senna later discovered that LePenn is a brother-In-law of the owner of the current raw materlals supply vendor. Part 1 (Algo) Required: 1. Calculate both the old (I.e., prior to the special order) average cost per unit and the revised average cost per unit, Including the effec of the special sales order. 2. What is the short-term effect on operating profit if Award Plus Company accepts the special sales order? 3. What is the breakeven selling price per unit for the special sales order? Complete this question by entering your answers in the tabs below. Calculate both the old (i.e., prior to the special order) average cost per unit and the revised average cost per unit, including the effect of the special sales order. (Round your answers to 2 decimal places.) Requlred information Problem 11-32 (Algo) Special Order [LO 11-2, 11-8] [The following Information applies to the questions displayed below.] Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month; current monthly production is 7,880 medals. The company normally charges $320 per medal. Varlable costs and fixed costs for the current activity level follow: Award Plus has just recelved a special one-time order for 2,120 medals at $210 per medal. For this particular order, no varlable marketing costs will be Incurred. Cathy Senna, a management accountant with Award Plus, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Senna suggested to her supervisor, Gerard LePenn, who is the controller, that they request compettitive bids from vendors for the raw materlals because the current quote seems high. LePenn Insisted that the prices are In IIne with those of other vendors and told her that she was not to discuss her observations with anyone else. Senna later discovered that LePenn is a brother-in-law of the owner of the current raw materlals supply vendor. Part 1 (Algo) Required: 1. Calculate both the old (I.e., prior to the speclal order) average cost per unit and the revised average cost per unit, Including the effect of the special sales order. 2. What is the short-term effect on operating profit if Award Plus Company accepts the speclal sales order? 3. What is the breakeven selling price per unit for the special sales order? Complete this question by entering your answers in the tabs below. What is the short-term effect on operating profit if Aviard Plus Company accepts the special sales order? (Round your answer to nearest whole dollar amount.) Problem 11-32 (Algo) Special Order [LO 11-2,11-8] [The following information applies to the questions displayed below.] Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month; current monthly production is 7,880 medals. The company normally charges $320 per medal. Varlable costs and fixed costs for the current activity level follow: Award Plus has just recelved a special one-time order for 2,120 medals at $210 per medal. For this particular order, no varlable marketing costs will be incurred. Cathy Senna, a management accountant with Award Plus, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Senna suggested to her supervisor, Gerard LePenn, who is the controller, that they request competitive bids from vendors for the raw materlals because the current quote seems high. LePenn insisted that the prices are In line with those of other vendors and told her that she was not to discuss her observations with anyone else. Senna later discovered that LePenn is a brother-in-law of the owner of the current raw materlals supply vendor. Part 1 (Algo) Requlred: 1. Calculate both the old (I.e., prior to the special order) average cost per unit and the revised average cost per unit, Including the effe of the special sales order. 2. What is the short-term effect on operating profit If Award Plus Company accepts the speclal sales order? 3. What is the breakeven selling price per unit for the special sales order? Complete this question by entering your answers in the tabs below
