Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.60 T of each unit follows: Materials Labor Variable overhead Fixed overhead (523,375 per month, 18,700 units per month) Total costs per unit 0.80 3.20 1.25 $3.35 One of Rutkey's regular customers asked the company to fill a special order of 700 units at a selling price of $2.35 per unit. Ru can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was con about selling at a price below the $3.35 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the impact of providing the special order of 700 units on Rutkey's profits in addition to the regu production and sales of 18,700 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 reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was ac Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a schedule to show the impact of providing the special order of 700 units on Rutkey's profits in addition to the regular production and sales of 18,700 units per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" If there is no effect.) Prou 2 of 10 One oluky s regular customers asked the company to fill a special order of 700 units at a selling price of $2.35 per unit. Ruth can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was conce about selling at a price below the $3.35 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the impact of providing the special order of 700 units on Rutkey's profits in addition to the regule production and sales of 18.700 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 ordery reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was acc ences Complete this question by entering your answers in the tabs below. Required A Required B Required C 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 e to search 0 e 9 MUULIL JOUW ule all I PIUviding the special order of 700 units on Rutkey's profits in addition to th production and sales of 18.700 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 reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order v Complete this question by entering your answers in the tabs below. Required A Required B Required C If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was accepted? O Increase Decrease O No change Required B 4 arch 9
