{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T07:20:13-04:00", "answer_date": "2024-06-28 07:20:13", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4262255", "url": "\/study-help\/questions\/the-following-information-relates-to-current-production-of-outdoor-chaise-4262255", "question_creation_date_js": "2024-06-28T07:20:13-04:00", "question_creation_date": "Jun 28, 2024 07:20 AM", "meta_title": "[Solved] The following information relates to curr | SolutionInn", "meta_description": "Answer of - The following information relates to current production of outdoor chaise lounges at BackyardPosh: Variable manufactur | SolutionInn", "meta_keywords": "information,relates,current,production,outdoor,chaise,lounges,backyardposh,variable,manufacturing,costs,per", "question_title_h1": "The following information relates to current production of outdoor chaise lounges at BackyardPosh: Variable manufacturing costs per unit $ 105 $105 Total fixed manufacturing costs", "question_title": "The following information relates to current production of outdoor chaise lounges at", "question_title_for_js_snippet": "The following information relates to current production of outdoor chaise lounges at BackyardPosh Variable manufacturing costs per unit $ 105 $105 Total fixed manufacturing costs $525,000 Variable marketing and administrative costs per unit $ 30 $30 Total fixed marketing and administrative costs $250,000 The regular selling price per chaise lounge is $ 350 $350 The company is analyzing the opportunity to accept a special sales order for 300 300 chaise lounges at a price of $ 210 $210 per unit Variable marketing and administrative costs would be $ 15 $15 per unit lower than on regular sales Fixed costs would increase by $ 13 comma 000 $13,000 The company has the capacity to produce 85 comma 000 85,000 chaise lounges peryear, but is currently producing and selling 10 comma 000 10,000 chaise lounges per year Regular sales will not be affected by the special order If the company were to accept this specialorder, how would operating income beaffected ", "question_description": "

The following information relates to current production of outdoor chaise lounges at BackyardPosh:<\/p>

Variable manufacturing costs per unit<\/p>

$ 105<\/p>

<\/p>

$105<\/p>

Total fixed manufacturing costs<\/p>

$525,000<\/p>

Variable marketing and administrative costs per unit<\/p>

$ 30<\/p>

<\/p>

$30<\/p>

Total fixed marketing and administrative costs<\/p>

$250,000<\/p>

The regular selling price per chaise lounge is $ 350<\/p>

<\/p>

$350. The company is analyzing the opportunity to accept a special sales order for 300<\/p>

<\/p>

300 chaise lounges at a price of $ 210<\/p>

<\/p>

$210 per unit. Variable marketing and administrative costs would be $ 15<\/p>

<\/p>

$15 per unit lower than on regular sales. Fixed costs would increase by $ 13 comma 000<\/p>

<\/p>

$13,000. The company has the capacity to produce 85 comma 000<\/p>

<\/p>

85,000 chaise lounges peryear, but is currently producing and selling 10 comma 000<\/p>

<\/p>

10,000 chaise lounges per year. Regular sales will not be affected by the special order. If the company were to accept this specialorder, how would operating income beaffected?<\/p>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting Tools for Business Decision Making ", "isbn": "1118856996, 978-1118856994", "edition": "4th Canadian edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1190.jpg", "uri": "\/textbooks\/managerial-accounting-tools-for-business-decision-making-4th-canadian-edition-1190", "see_more_uri": "" }, "free_related_book": { "isbn": "1781955328", "uri": "\/textbooks\/economic-growth-in-an-open-developing-economy-the-role-of-structure-and-demand-1st-edition-978-1781955321-285868", "name": "Economic Growth In An Open Developing Economy The Role Of Structure And Demand", "edition": "1st Edition" }, "question_posted": "2024-06-28 07:20:13", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-parent-acquires-the-outstanding-bonds-of-a-subsidiary-company", "description": "A parent acquires the outstanding bonds of a subsidiary company directly from an outside third party. 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