Since there is spare capacity, no additional fixed costs will be incurred on the special order | ||||
Status Quo | Alternative | Difference | ||
Sales Revenue | 93,000,000 | 103,000,000 | 10,000,000 | Higher |
Variable costs | ||||
Manufacturing | 50,530,000 | 57,050,000 | 6,520,000 | Higher |
Selling and Admin | 26,350,000 | 28,390,000 | 2,040,000 | Higher |
Contribution Margin | 16,120,000 | 17,560,000 | 1,440,000 | Higher |
Fixed costs | 19,220,000 | 19,220,000 | - | Same |
Operating Profit | (3,100,000) | (1,660,000) | 1,440,000 | Higher |
No, the order should be accepted since profitable |
Alpine Luggage has a capacity to produce 390,000 suitcases per year. The company is currently producing...
Alpine Luggage has a capacity to produce 390,000 suitcases per year. The company is currently producing and selling 310,000 units per year at a selling price of $404 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $ 156 41 84 20 $ 301 The company has received a special order for 30,000 suitcases at a price of $249 per...
Alpine Luggage has a capacity to produce 390,000 suitcases per year. The company is currently producing and selling 310,000 units per year at a selling price of $399 per case. The cost of producing and selling one case follows: Variable manufacturing costs $ 163 Fixed manufacturing costs 41 Variable selling and administrative costs 85 Fixed selling and administrative costs 21 Total costs $ 310 The company has received a special order for 40,000 suitcases at a price of $250 per...
Alpine Luggage has a capacity to produce 440,000 suitcases per year. The company is currently producing and selling 360,000 units per year at a selling price of $399 per case. The cost of producing and selling one case follows: Variable manufacturing costs $ 162 Fixed manufacturing costs 40 Variable selling and administrative costs 79 Fixed selling and administrative costs 20 Total costs $ 301 The company has received a special order for 30,000 suitcases at a price of $248 per...
Alpine Luggage has a capacity to produce 420,000 suitcases per year. The company is currently producing and selling 340,000 units per year at a selling price of $398 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $ 160 39 81 22 $ 302 The company has received a special order for 30,000 suitcases at a price of $250 per...
Alpine Luggage has a capacity to produce 360,000 suitcases per year. The company is currently producing and selling 280,000 units per year at a selling price of $401 per case. The cost of producing and selling one case follows: Variable manufacturing costs $ 165 Fixed manufacturing costs 40 Variable selling and administrative costs 83 Fixed selling and administrative costs 19 Total costs $ 307 The company has received a special order for 30,000 suitcases at a price of $251 per...
Alpine Luggage has a capacity to produce 370,000 suitcases per year. The company is currently producing and selling 290,000 units per year at a selliby price of $403 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $ 162 40 79 20 $ 301 The company has received a special order for 20,000 suitcases at a price of $251 per...
Alpine Luggage has a capacity to produce 370,000 suitcases per year. The company is currently producing and selling 290,000 units per year at a selling price of $397 per case. The cost of producing and selling one case follows: Variable manufacturing costs $ 165 Fixed manufacturing costs 41 Variable selling and administrative costs 81 Fixed selling and administrative costs 20 Total costs $ 307 The company has received a special order for 30,000 suitcases at a price of $248 per...
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
$
156
Fixed manufacturing costs
41
Variable selling and administrative costs
80
Fixed selling and administrative costs
20
Total costs
$
297
The company has received a special order for 40,000 suitcases at a
price of $251 per...
Alpine Luggage has a capacity to produce 360,000 suitcases per year. The company is currently producing and selling 280,000 units per year at a selling price of $399 per case. The cost of producing and selling one case follows: $ 164 Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs 80 $ 302 The company has received a special order for 40,000 suitcases at a price of $250 per case. It...
Alpine Luggage has a capacity to produce 430,000 suitcases per year. The company is currently producing and selling 350,000 units per year at a selling price of $397 per case. The cost of producing and selling one case follows: $161 40 Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs 21 $306 The company has received a special order for 40,000 suitcases at a price of $249 per case. It will...