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Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 75 percent (97,500 units) of its capacity: Sales revenue Cost of goods sold Gross profit Operating expenses Net operating income $1,560,000 560, 625 $ 999,375 48,750 $ 950,625 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 25,000 cups for $10 each (total $250,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $75,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses, Required: 1. Complete the incremental analysis of the special order in the table provided below. 2. Should Camino accept this special order? 3. If Camino were operating at full capacity, what price would Camino require for the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 13,000 awnings it needs for $28 each. Old Camp's costs to make the awning are $15 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer. $45,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines. Required: 1. Complete the incremental analysis for the decision to make or buy the awnings in the table provided below. 2. Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier? 3. Assuming that the capacity released by purchasing the awnings allowed Old Camp to record a profit of $22,000, should Old Camp continue to manufacture or purchase the awnings? . Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 75 percent (97,500 units) of its capacity Sales revenue Cost of goods sold Gross profit Operating expenses Net operating income $1,560,000 560, 625 999, 375 48,750 $ 950,625 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 25,000 cups for $10 each (total $250,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $75,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses. Required: 1. Complete the incremental analysis of the special order in the table provided below. 2. Should Camino accept this special order? 3. If Camino were operating at full capacity, what price would Camino require for the special order? Required 1 Required 2 Required 3 Complete the incremental analysis of the special order in the table provided below. places.) Per cup Total Incremental Revenue Less: Incremental Costs Variable COGS Variable Operating Expenses Endorsement Fee Incremental Profit Required 1 Required 2 Reasred 3 If Camino were operating at full capacity, what price would Camino require for the special order? Price per Cup

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