Favorites Tools Help ogle YouTube n.1mu add 4)1. T 20600112 HOMEWORK EX t29 FALL

Question

Favorites Tools Help ogle YouTube n.1mu add 4)1. T 20600112 HOMEWORK EX t29 FALL 2017 -d: ohotmail a Robert Blackboard-Bank N Netflix yao, Deita Company produces a single prodo. The cost ofproducing and seling a sr gleumm of this productthe company's no mal activity level of 96,000 units per year Direct materials Direet labor Variable sanufacturing ovechead Fixed manufacturing overhead Variable selling and administrative 1.80 3.00 0.60 4.55 $1.40 Fixed selling and administrative expenses $2.00 The normal selling prico is $20.00 per unit. The company's capacity Iis 121200 units per year. An order has been recelved order house for 2100 units at a special price of $17.00 per unit. This order would not affect reguliar sales or the company's total fied costs. Required t What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate mater from the special produced last year and that are inferior to the current model. The units must unit cost is relevant for establishing a minimum seling price for these unns? order assume the company's inventory includes 1000 units of this product that were be sold through regular channels at reduced prices. What Complete this question by entering your answers in the tabs below what is the financial advantage(disadvancage) of accepting the special order? Required 2 of l TOSHIBA

Explanation / Answer

Per unit 2100 units Incremental revenue 17 35700 Costs: Direct materials 1.8 3780 Direct labor 3 6300 Variable manufacturing overhead 0.6 1260 Variable selling and administrative expenses 1.4 2940 Financial advantage 21420 2 Relevant cost = Variable selling and administrative expenses = $1.4

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