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Simple Products manufactures t-shirts. It has the following costs when its production level is 85,000 units (t-shirts): (Click the icon to view the costs.) Click
Simple Products manufactures t-shirts. It has the following costs when its production level is 85,000 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.) More info The company's relevant range extends to 98,500 units. Simple has received a special order for 8,500 t-shirts at a special price of $59,500 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 $0.75 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. Simple Products manufactures t-shirts. It has the following costs when its production level is 85,000 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.) More info The company's relevant range extends to 98,500 units. Simple has received a special order for 8,500 t-shirts at a special price of $59,500 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 $0.75 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
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