CoursHeroTranscribedText: Alpine Luggage has a capacity to produce 380,000 suitcases per year: The company is...
90.2K
Verified Solution
Link Copied!
Question
Accounting
CoursHeroTranscribedText: Alpine Luggage has a capacity to produce 380,000 suitcases per year: The company is currently producing and selling 300,000 units per year at a selling price of $403 per case. The cost of producing and selling one case follows: Variable manufacturing costs $163 Fixed manufacturing costs 40 Variable selling and administrative costs 33 Fixed selling and administrative costs 19 Total costs $305 The company has received a special order for 30,000 suitcases at a price of $249 per case. It will not have to pay any sales commission on the special order. so the variable selling and administrative costs would be only $49 per suitcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case $249 Variable manufacturing costs 163 Fixed manufacturing costs 40 Variable selling and administrative costs 49 Fixed selling and administrative costs 19 Net profit (loss) per case $l221 Required: a. What is the impact on prot for the year if Alpine accepts the special order? {Enter your answers in thousands of dollars. Select option "higher" or "lower", keeping Status Duo as the base. Select "none" if there is no effect.) Sales revenue Variable costs: Manufacturing Selling and administrative Contribution margin Fixed costs Operating profit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!