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Simple Products manufactures t-shirts. It has the following costs when its production level is 115,000 units (t-shirts): (Click the icon to view the costs.) (Click

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Simple Products manufactures t-shirts. It has the following costs when its production level is 115,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Simple's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Simple's operating income if it accepts this special order. (Round all per unit amounts to the nearest cent, $X.XX, and all other amounts to the nearest whole dollar. Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (11,500 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 Simple accept the special sales order because it will operating income -X More Info The company's relevant range extends to 131,500 units. Simple has received a special order for 11,500 t-shirts at a special price of $60,375 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Simple, which would allow Simple to save $0.70 per t-shirt in direct materials when manufacturing this special order. Simple has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order. Print Done i Data Table Total costs for 115,000 units b 131 bial pri Direct materials $ 379,500 Direct labor Iric thai Simp Jal orde ixed co 23,000 74,750 160,000 Variable manufacturing overhead Fixed manufacturing overhead $ 637,250 Total manufacturing costs Don Print Done

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