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Robert Inc. is selling 22,000 bags of its product and the full capacity is 24,000 bags per month. Robert received a request for a special
Robert Inc. is selling 22,000 bags of its product and the full capacity is 24,000 bags per month. Robert received a request for a special order of 5,400 bags from Hamilton Corp. The total special selling price for the order was $132,000. There would be no variable selling costs but there would be a one-time $3,500 packing and delivery cost for Robert. The following information is provided about Robert's current operations: Sales and production cost data for 22,000 bags, per bag: Sales price $ 42 Variable manufacturing costs 16 Variable selling costs Fixed manufacturing costs 15 Fixed marketing costs 5 4 Assume there would be no other costs associated with the special order. Hamilton requires that Robert fill the entire order of 5,400 bags Required: 1. What is the total relevant cost of filling this special sales order? 2. What would be the change in operating income of the special order is accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the total relevant cost of filling this special sales order? Totat relevant cost Sales and production cost data for 22,000 bags, per bag: Sales price $ 42 Variable manufacturing costs 16 Variable selling costs 4. Fixed manufacturing costs 15 Fixed marketing costs 5 Assume there would be no other costs associated with the special order. Hamilton requires that Robert fill the entire order of 5,400 bags. Required: 1. What is the total relevant cost of filling this special sales order? 2. What would be the change in operating income if the special order is accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What would be the change in operating income if the special order is accepted? Operating Income would by
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