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The management team of Novak Industries was evaluating its performance for the first half of the year. Production and sales of its fans were on budget at 3,200 units to date, with the following income statement reflecting its income for the first half of the year. Sales Variable costs: DM DL Variable selling Contribution margin Variable-MOH (a) (b) Fixed costs: Fixed-MOH Fixed selling Operating income (loss) $51,200 32,000 9,600 Novak Industries would be 6.400 eTextbook and Media 36.000 Your answer is correct. 116,000 Novak Industries would be Orders for the second half of the year were coming in slower than what the company had been expecting. When a new customer called and requested a special discount, the sales team listened. $256,000 99.200 Assume the customer requests 195 units in the special order and offers $53 per unit. Since the customer came directly to the company, no variable selling cost will be incurred. How much better or worse off will Novak Industries be if it accepts this special order, assuming it has enough idle capacity for the order? better off 156,800 152,000 $4,800 by $ 4680 by accepting this order. by $ Assume instead that the customer requests 95 units in the special order and offers $38 per unit. Novak management still believes there will be enough capacity to take on the special order. This time, however, variable selling costs will be incurred because the customer is working through a sales representative. How much better or worse off will Novak Industries be if it accepts this special order? Assistance Used by accepting this order. Attempts: 1 of 3 used

The mankement team of Novak industries was evaluating its performance for the fint hal of the vear. Prodiction and ales of its Orders for the second halt of the vear were coming in slower thos whut the comoany hud been expecting When a new customer called and requested a special discount, the soles tram fistened. (a) Assume the customer requests 195 un ts in the sperial order and offers $53 fer unit since the customer came directly to the company, no variable seli ing cost wili be incurred. How much better or worse off will Novak ind astries be if a accepts this special order, assuming it has enough ifle capacity for the order? Novak Inidustries would be bys by accepting this crider eTextbook and Media Assistance Used Attempta: 1 of 3 used (b) Assume instexd that the customer requests 95 units in the apecid/ prider and offers 539 per witt Novak managrinent stli believes there will be enough capacity to take on the special onder This time fowever variableseling conts mil be incurred becaupe the custorner is working the ough a sales representative. How much better or worse off will Novak tnduatries be if it accepts this special order? Novakindustries would be bys byaccopting this order: The managenent tesm of Novak industries was evaluat ing its performunce for the fint half of the year. Prodiction and aies of its Orden for the shcond halt of the year were coming lin slower thun whut the comoany hud been ocectine When a new customer called and requested a special discount, the sales tram fictered. (a) Assume the customer requests 195 un ts in the special arder and ofles $53 per init since the customer came directly to the company no variable selling cost will be incurred. How much better or worse off will Novak lind antries be if it accepts this apecial order, assuming it has enough ide cupacity for the order? Novak Industries would be bys byaccepting thiserder eTextbookandMedia Assistance Used Attemota: 1 of a used (b) there will be enough capac by to talic on the special crder This time fovevec valableseling conts nil be incurred because the customer is working through a sales representative. How much better or worse off will Nowak tnduatries be if il accepts this special order? Novak industries would be ths by acctptine this order

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