1a)

1b)

Hellx Company has been approached by a new customer to provide 2.300 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is operating at 75% of its capacity of 10,300 units. Identify whether the following costs are relevant to Hellx's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.60 per unit shipping cost. There will be no additional administrative expenses because of this order. Calculate the operating income from the order, Relevant Not Relevant Relevant Revenue (Costa) o. Selling price b. Direct materials cost c. Direct labor cost d. Variable manufacturing overhead o. Fixed manufacturing overhead Regular selling expenses Q. Additional selling expenses h. Administrative expenses Revenue (cost) per unit $ 6.00 (1.00) 12.00) (120) (0.75) (1.20) (0.60) (0.70) 2,300 Total operating income oss) from special order Based on financial considerations sone, should Helix accept this order at the special pron? A company has already incurred $6,400 of costs in producing 6,800 units of Product XY. Product XY can be sold as is for $29 per unit. Instead, the company could incur further processing costs of $11 per unit and sell the resulting product for $36 per unit. Should the company sell Product XY as is or process it further? (Any loss amount should be indicated with minus sign.) Sell as is Process Further Incremental Amount Selling price per unit Additional processing costs per unit Income (10) The company should