Data table Direct materials..., $ 42 13 Direct labor. ... Variable manufacturing overhead... 8 Variable...
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Data table Direct materials..., $ 42 13 Direct labor. ... Variable manufacturing overhead... 8 Variable marketing expenses 3 25 Fixed manufacturing overhead $ 91 Total cost $2,000,000 total fixed manufacturing overhead + 80,000 pairs of sunglasses Duis Requirements 1. How would accepting the order affect Bradford Juda's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Juda's managers consider in deciding whether to accept the order? 2. Bradford Juda's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $79 is less than Bradford Juda's $91 cost to make the sunglasses, Revo asks you, as one of Bradford Juda's staff accountants, to explain whether his analysis is correct Print Done Total Order Per Unit (23,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Bradford Juda Sunglasses sell for about $125 per pair. Suppose the company incurs the following average costs per pair Click the icon to view the cost information.) Bradford Juda has enough idle capacity to accept a one-time-only special order from Colorado Glasses for 23,000 pairs of sunglasses at $79 per pair. Bradford Juda will not incur any variable marketing expenses for the order Read the requirements Requirement 1. How would accepting the order affect Bradford Juda's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Juda's managers consider in deciding whether to accept the order? Prepare an incremental analysis to determine the special order's effect on operating income (Enter a "c* for any zero bastances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order) Total Order (23,000 units) Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order Loss variable expense associated with the order Variable manufacturing costs inc Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease in operating income from the special order




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