? eztomheducation com/hmtpx Learning 3 Blockbord Learn Welcome my utrg Cinemark

Question

? eztomheducation com/hmtpx Learning 3 Blockbord Learn Welcome my utrg Cinemark Theatres G Work in lapan! Gal Mohave Corp, makes several special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost at an upcoming convention sponsored by Lost Mine Lost Mine has offered to buy 1,900 of the US umbrelas at a price of $15 each. Mohave currenty has the excess capacity information is related to the production of the US umbrella I varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about Mine Company logo would be distributed to participants currenty has the excess capacity necessary to accept the offer. The following Direct materials Direct labor Variable manufacturing overhead 7.00 3.00 3.00 2.50 $15.50 $23.00 Fixed manufacturing overhead Total cost Regular sales price Required 1. Compute the incremental profit (or loss) from accepting the special order by 57 PM O Type here to search

Explanation / Answer

Increase by $3800

2. Mohave should accept the order as it increases the revenue by $3800

3.

Mohave should not accept the order as it will decrease the revenue by $7200

Additional Revenue (1900x$15) $28500 Less. Additional Direct Materials (1900 x $7) $13300 Less. Additonal Direct Labour (1900 x $3) $5700 Less. Additonal Variable OH (1900 x $3) $5700 Fixed Overhead (remains same no matter the production) 0 Additonal Revenue $3800

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