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Sampson Industries has an annual plant capacity of 75,000 units; current production is 58,000 units per year. At the current production volume, the variable
Sampson Industries has an annual plant capacity of 75,000 units; current production is 58,000 units per year. At the current production volume, the variable cost per unit is $35.00 and the fixed cost per unit is $4.40. The normal selling price of Sampson's product is $50.00 per unit. Sampson has been asked by Bramwall Company to fill a special order for 12,000 units of the product at a special sales price of $28.00 per unit. Bramwall is located in a foreign country where Sampson does not currently operate. Bramwall will market the units in its country under its own brand name, so the special order is not expected to have any effect on Sampson's regular sales. Read the requirements. Requirement 1. How would accepting the special order impact Sampson's operating income? Should Sampson accept the special order? The special order will Sampson's operating income by $ accept the special sales order. Thus, Sampson Requirements 1. How would accepting the special order impact Sampson's operating income? Should Sampson accept the special order? 2. How would your analysis change if the special order sales price were to be $45.00 per unit and Sampson would have to pay an attorney a fee of $12,000 to make sure it is complying with export laws and regulations relating to the special order? Print Done
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