Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(similar to) Question Help Mermaid manufactures flotation vests in Charleston South Carolina Mermaid's Suppose Optimum wishes to buy 4 200 vests from Mermaid Mermaid will

image text in transcribed
image text in transcribed
image text in transcribed
(similar to) Question Help Mermaid manufactures flotation vests in Charleston South Carolina Mermaid's Suppose Optimum wishes to buy 4 200 vests from Mermaid Mermaid will not incur contribution margin income statement for the month ended August 31, 2018 any variable selling and administrative expenses on the special order The contains the following data O Mermaid plant has enough unused capacity to manufacture the additional vests Click the icon to view the cost information Optimum bas offered & per vest which is below the normal sales price of $17 Read the requirements 1 Requirement 1. Identify onch cont in the income statements et relevant or inelevant to Mermaid's decision wi Visunblo Marutacturing Costs rolovat Variable Selling and Administrative Costs relevant Fixed Manufacturing costs relevant Fixed Seling and Administrative Conts rol van mila Requirement 2. Prepare a differential analysis to determine whether Mormaid should accept this pocostos order to decreases to rent or across to costs with a parentheses or mission study In operating income Choose from my strente any nunter the routes and then click Check Awww. 2 DAN | Check AW Mermaid Income Statement For the Month Ended August 31, 2018 Sales in Units 40,000 680,000 Net Sales Revenue $ Variable Costs Manufacturing 200,000 111,000 Selling and Administrative Total Variable Costs 310,000 treas Contribution Margin 369,000 Fixed Costs: Manufacturing Selling and Administrative sor 120,000 86,000 206,000 Total Fixed Costs 163,000 Operating Income umbl P25-27B (similar to) Question Help Mermaid manufactures flotation vests in Charleston South Carolina Mermaid's contribution margin income statement for the month onded August 31 2018, contains the following data Click the icon to view the cost information Read the resuirements Suppose Optimum wishes to buy 4 200 vests from Mermaid Mermaid will not incun any variable selling and administrative expenses on the special order The Mermaid plant has enough unused capacity to manufacture the additional vests Optimum has offered S8 por west, which is below the normal sales price of $17 ol O 1 avant Requirement 1. Identity each cost in the income statement as other relevant or relevant to Mermaid's decision w Variable Manufacturing Costs Variable Selling and Administrative Costs irrelevant Fixed Manufactung Costs irrelevant Fixed Soling and Administrative Costs relevant Requirement 2. Prepare a diferental analysis to determine whether Mermaid shot occupimus special sales orden decreto revenue or increases to con with a wontes or minus study In operating com ACT Choose from any list or enter any number in the intends and check som

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Special Edition For California State University Los Angeles

Authors: Garrison

14th Edition

0077519973, 978-0077519971

More Books

Students also viewed these Accounting questions