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& S8-4 (similar to) Press Products manufactures t-shirts. It has the following costs when its production level is 120,000 units (t-shirts) EEE (Click the icon
& S8-4 (similar to) Press Products manufactures t-shirts. It has the following costs when its production level is 120,000 units (t-shirts) EEE (Click the icon to view the costs.) What will happen to Press's operating income if it accepts this special order? (Click the icon to view additional information.) Complete the following incremental analysis to determine the impact on Press's operating income if it accepts this special order. (Round all per unit amounts to the nearest cent, contribution margin and/or operating income from the special order.) Data Table Total Order Incremental Analysis of Special Sales Order Decision Per Unit(12,000 units) Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Total costs for 120,000 units Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 348,000 30 ,000 114,000 70,000 562000 Total manufacturing costs More Inf Print Done The company's relevant range extends to 137 ,000 units. Press has received a special order for 12,000 t-shirts at a special price of $63,000 for the entire order The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Press, which would allow Press to save $0.45 per t-shirt in direct materials when manufacturing this special order. Press has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order. Print Done er any nurm part remaining
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