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Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that

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Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that is sold in bridal salons. Her accountant prepared the following forecasted income statement for March, which is a busy month Number of dresses Soles revenue Materials Labor Machine depreciation Rent Heat and light Other production costs Marketing and administration Total costs Operating profit Custom Dresses 10 $49,500 $ 9,900 19,900 590 4,100 1,200 Standard Dresses Total 20 30 529,500 $ 79,000 $ 7,900 $ 17,000 8,960 28,50 290 BBC 2,780 6. Beg 800 2.IN 2.700 7. 500.580 $12,4241 Ms. Nill already has orders for the 10 custom dresses elected in the March forecasted income statement. The depreciation charges are for machines used in the respective product lines, Machine depreciate at the rate of $1 per hour based on hours used, so these are variable costs. In March, cutting and sewing machines are expected to operate for 880 hours of which 590 hours will be used to make custom dresses. The rent is for the building space which has been leated for several years at 56.800 per month. The rent heat. and light are allocated to the product lines based on the amount of poor space occupiec A volued customer, who is a wedding consultant, has asked Ms. No foroecial favor. This customer has a client who wants to get marned in early April. Ms. Nili's company is working at capacity and would have to give up some other business to make this dress She can't renege on custom orders already agreed to, but she seduce the number of standard dresses produced in March to 10 Ms. Nii would lose permanently the opportunity to make up the lost production of standard dresses because she has no unused capacity for the foreseeable future. The customer is willing to pay $23.990 for the special order. Materials and labor for the order will cost $5.900 and $9.900, respectively. The special order would requites bouts of machine time. Ms. Nili's company would save 145 hours of machine time from the standard dress business given up Rent heat and light and other production costs would not be affected by the special order. Required: a-1. Calculate the differential operating profit (loss), 3-2 from an operating profit (oss) perspective for March, should Ms. Nill accept the order? b. What is the minimum price Ms Nill should accept to take the special order Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Calculate the differential operating profit (loss). (Select option increase" or "decrease keeping without special order as the base. Select "none" If there is no effect.) Without Special Order With Special Order Impact Revenue Materials Labor Machine depreciation Contribution margin Rent Heat and light Other production costs Marketing and administration Operating profit (los) Reg A2 > Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B From an operating profit (loss) perspective for March, should Ms. Nill accept the order? Yes ONO Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B What is the minimum price Ms. Nili should accept to take the special order? Minimum price

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