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The following is the cost for each unit that Flyer Company produces: Materials Labor Variable overhead Fixed overhead ($1,890,000 per year; 105,000 units per year)

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The following is the cost for each unit that Flyer Company produces: Materials Labor Variable overhead Fixed overhead ($1,890,000 per year; 105,000 units per year) Total $36.00 14.00 4.00 18.00 $72.00 A buyer has approached Flyer Company with an offer to buy 8,000 units for $60 each. Flyer Company's normal price is $100. Flyer Company has sufficient capacity to produce the special order units without affecting its production of units for regular customers. The buyer requires a special label to be affixed to each unit, resulting in an additional $2.00 per unit in material cost. There is no additional labor cost related to the special label (se, direct labor for each special order unit will be the same as direct labor for the normal units) The special order will also require the rental of equipment, which will cost $30,000. Required: 1. Prepare a schedule to analyze the impact of filling the special order on Flyer Company's profits for the year. 2. Based on financial considerations only, should Flyer Company accept the special order? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Complete the following schedule to analyze the special order. The Difference column should be with Special Order column minus Without Special Order column Without Special With Special Order Order Difference 105,000 Units 113,000 Units 800,000 $ 480,000 $ (320,000) Sales revenue Less variable costs: Required: 1. Prepare a schedule to analyze the impact of filling the special order on Flyer Company's profits for the year. 2. Based on financial considerations only, should Flyer Company accept the special order? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Complete the following schedule to analyze the special order. The Difference column should be With Special Order column minus Without Special Order column Without Special With Special Order Order Difference 105,000 Units 113,000 Units Sales revenue 800,000 $ 480,000 $ (320,000) Less variable costs: Materials $ 288,000 $ 304,000 $ 16,000 Labor $ 112,000 $ 112,000 $ 0 Variable overhead $ 32.000 $ 32,000 $ 0 Total variable cost $ 432,000 $ 448,000 $ 16.000 Contribution margin $ 368,000 $ 32,000$ (336,000) Less: Fixed costs $ or s 30,000 $ 30,000 Operating profit (loss) $ 368,000 $ 2,000 $ (366,000) Reg Req2 > Required: 1. Prepare a schedule to analyze the impact of filling the special order on Flyer Company's profits for the year. 2. Based on financial considerations only, should Flyer Company accept the special order? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Based on financial considerations only, should Flyer Company accept the special order? Yes ONO

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