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  3. ricardo corporation's sales for the year 2019 were

Ricardo Corporation's sales for the year 2019 were $11,000,000 against 2,000,000 units. The COGS was...

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Ricardo Corporation's sales for the year 2019 were $11,000,000 against 2,000,000 units. The COGS was $6,500,000 and the fixed manufacturing cost was $3,000,000. The total selling and administrative cost in 2019 amounted to 3,000,000. The Co. received special order of 400,000 units within the designed capacity and there will be no change in the variable cost per unit. The fixed selling expenses constitute 67% of the total selling cost. The special-order price was around 40% of the normal price. Required: 1. Figure out the NOI without special order. (Contribution Approach) 2. What kind of advice that will you give to the management on the minimum special- order price to be accepted. Show computation

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