Oh Company is considering a special order of 100 silver rings for $165. The normal selling...

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Oh Company is considering a special order of 100 silver rings for $165. The normal selling price for each ring is $212 and the product cost is as follows: Direct materials Direct labor Manufacturing $ 101 39 30 * overhead Unit product cost $ 170 *One third of the manufacturing overhead is fixed and two thirds is variable. Per Unit $ 165 Incremental revenue Incremental costs: Variable costs: $ 101 Direct materials 10100 39 3900 Direct labor Variable manufacturing overhead $ Total $ 16500 Variable manufacturing overhead Total variable cost Contribution Margin Fixed costs: Increment operating income Should Oh Company accept the special offer? [accept $ Oh Company is considering a special order of 100 silver rings for $165. The normal selling price for each ring is $212 and the product cost is as follows: Direct materials Direct labor Manufacturing $ 101 39 30 * overhead Unit product cost $ 170 *One third of the manufacturing overhead is fixed and two thirds is variable. Per Unit $ 165 Incremental revenue Incremental costs: Variable costs: $ 101 Direct materials 10100 39 3900 Direct labor Variable manufacturing overhead $ Total $ 16500 Variable manufacturing overhead Total variable cost Contribution Margin Fixed costs: Increment operating income Should Oh Company accept the special offer? [accept $

Answer rating: 100% (QA)

To determine whether Oh Company should accept the special order of 100 silver rings for 165 each we need to calculate the incremental revenue incremen... View the full answer