cab anyone explain to me how to work this problem? ...
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cab anyone explain to me how to work this problem?
Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.55 The cost of each unit follows: $1.00 0.70 Materials Labor Variable overhead Fixed overhead ($14,85e per month, 19,800 units per month) Total costs per unit 0.60 0.75 $3.05 One of Rutkey's regular customers asked the company to fill a special order of 400 units at a selling price of $2.80 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concemed about selling at a price below the $3.05 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the impact of providing the special order of 400 units on Rutkey's profits. In addition to the regular production and sales of 19,800 units per month b. Based solely on the data given what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit If the speclat order was accepted? Complete this question by entering your answers in the tabs below. Required A Required B Required Drepare a schedule to show the impact of previding the special order of 400 units on Rutkay's profits in addition to the regular production and sales of 19,000 units per month (Select option for lowering Status in the base Select "none" if there no effect Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare a schedule to show the impact of providing the special order of 400 units on Rutkey's profits in addition to the regular production and sales of 19,800 units per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Status Quo Alternative Difference 19,800 Cars 20,200 Cars Sales revenue Less variable costs Matenals Labor Vanable overhead Total variable cost $ 0 $ Contribution margin Loss Fixed costs Operating profit Recured Required B >


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