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Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.65 The cos of each
Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.65 The cos of each unit follows: Materials Labor Variable overhead Fixed overhead ($28,125 per nonth, 22,500 units per month) Total costs per unit $0.90 0.50 0.50 1.25 $3.15 One of Rutkey's regular customers asked the company to fill a special order of 800 units at a selling price of $2.40 per unit Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concerned about selling at a price below the $3,15 cost per unit and has asked for your advice. Required: o. Prepare a schedule to show the impact of providing the special order of 800 units on Rutkey's profits in addition to the regular production and sales of 22,500 units per month b. Based solely on the data given what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was accepted? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare a schedule to show the impact of providing the special order of 800 units on Rutkey's profits In addition to the regular production and sales of 22,500 units per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Status Quo 22,500 Cars Alternative 23,300 Cars Difference Sales tovonue Less variable costs Materials Labor Variable overhead Total vanable cost Contribution margin Less Fixed costs Operating profil $ 0 0 Required > quired: Prepare a schedule to show the impact of providing the special order of 800 units on Rutkey's profits in addition to the oduction and sales of 22,500 units per month. Based solely on the data glven, what is the lowest price per unit at which the model cars could be sold for the special ducing Rutkey's profits? If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order wa Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Based solely on the data given, what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? (Enter your answer to 2 decimal places.) Lowest price per car
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