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Sunshine Company has an annual factory capacity of 72,000 rugs, and current production is 50,000 rugs. Monthly fixed costs are 42,000 and variable costs are

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Sunshine Company has an annual factory capacity of 72,000 rugs, and current production is 50,000 rugs. Monthly fixed costs are 42,000 and variable costs are $30 per rug. Selling price is $41 per rug. The company has been approached by an Canadian company that would like a one-time order of 14,000 rugs for a sales price of $34 each. These rugs would be sold in Canada under a different brand name. The additional order is not expected to affect the current sales price or current quantity of rugs sold in Tennessee. Requirements: 1. Prepare a numerical, labeled analysis for Sunshine to help them decide whether to accept this order or not? Include capacity, price and other non-monetary reasons for your decision. List three specific reasons that support your decision Accept new order? Yes or No 2 3 Explain what impact on net income, this order will have on operating income. Prepare a contribution income statement in two columns, current operations and with new order. Current Contribution Margin Statement Contribution Margin Statement with new order What is the minimum price per rug that Sunshine needs to receive for any special orders? Show your work and label your answers. Calculate this result using only relevant information as included in your chapter coverage. What costs are relevant for this decision (be specific) and which costs, if any are irrelevant and why

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