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stuck on this question, plz help. Orr Products manufactures t-shirts, It has the following costs when its production level is 100,000 units (t-shirts): (Click the
stuck on this question, plz help.
Orr Products manufactures t-shirts, It has the following costs when its production level is 100,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Ort's operating income if it accepts this special order? Cothplete the following incremental analysis to determine the impact on Ori's operating income if it accepts this special order. (Round all per unit amounts to the nearost cent. $X and all other amounts to the nearest whole dollar, Enter a "0" for any zoro balances. Use parentheses or a minus sign to indicate a docrease in oontribution margin and or operating income from the special order.) Total Order \begin{tabular}{lrrr} Incremental Analysis of Special Sales Order Decision & Per Unit & (10,000 units ) \\ \hline Revenue from special order & 5.00 & 50,000 \\ \hline \end{tabular} 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 Data table More info The company's relevant range extends to 115,000 units. Orr has received a special order for 10,000t-shirts at a special price of $50,000 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Orr, which would allow Orr to save $0.50 per t-shirt in direct materials when manufacturing this special order. Orr has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order Step by Step Solution
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