Windham Industries has an annual plant capacity of 80,000 units current production is 65,000 units per year. At the current production volume, the variable cost per unit is $40.00 and the food cost per unit is $4.50. The normal selling price of Windham's product is $60.00 per unit Windham has been asked by Ramone Company to fill a special order for 8.000 units of the product at a special sales price of $38.00 per unit. Ramone is located in a foreign country where Windham does not currently operate. Ramona wil market the units in its country under its own brand name, so the special order is not expected to have any effect on Windham's regular sales Read the requirements Requirement 1. How would accepting the special order impact Windham's operating incomo? Should Windham accept the special order? Complete the following incremental analysis to determine the impact on Windham's operating income if it accepts this special order. (Enter a 'O' for any zeto balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision (8,000 units) Revenue from special order Less expenses associated with the order Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increaso (decrease) in operating income from the special order Windham accept the special sales order because it will operating income Requirement 2. How would your analysis change if the special order sales price were to be $50.00 per unit and Windham would have to pay an attomey a fee of $35,000 make sure it is complying with export laws and regulations relating to the special order? (Entet av for any zero balances. Use parentheses or a minus son to indicate a decrease in contribution margin and/or operating income from the special order) Tell A Windham Industries has an annual plant capacity of 80.000 units current production is 05,000 units per year At the current production volume, the variable cost per unit is $40.00 and the food cost per unit is $4.50. The normal selling price of Windham's product is $60.00 per unit Windham has been asked by Ramone Company to fill a special order for 8.000 units of the product at a special sales price of $38.00 per unit. Ramone is located in a foreign country where Windham does not currently operate Ramone wil market the units in its country under its own brand name, so the special order is not expected to have any effect on Windham's regular sales Read the requirements Less: Additional fixed expenses associated with the order Increase (decreaso) in operating income from the special order Windham accept the special sales ceder because it will operating income Requirement 2. How would your analysis change if the special order sales price were to be 550.00 per unit and Windham would have to pay an attomey a fee of 535,000 to make sure it is complying with export tows and regulations relating to the special order? (Enter a "O" 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) Total Order Incremental Analysis of Special Sales Order Decision (8,000 units) Revenue from special order Les expenses associated with the order Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease in operating income from the special order Windham accept the special sales order because it will operating income ociated with the order Requirements n y nd nd jus 1. How would accepting the special order impact Windham's operating income? Should Windham accept the special order? 2. How would your analysis change if the special order sales price were to be $50.00 per unit and Windham would have to pay an attorney a fee of $35,000 to make sure it is complying with export laws and regulations relating to the special order? ec oral rd Print Done assd income TTOTT the spectat UTTET
