Question: > 2 Part A: Bear Stuff Enterprises produces plant stuffed bears, Management has provided the following cost 3 and revenue information 4 Selling price per

 > 2 Part A: Bear Stuff Enterprises produces plant stuffed bears,
Management has provided the following cost 3 and revenue information 4 Selling
price per bear S 50.00 5 Variable product costs per bear $

> 2 Part A: Bear Stuff Enterprises produces plant stuffed bears, Management has provided the following cost 3 and revenue information 4 Selling price per bear S 50.00 5 Variable product costs per bear $ 20.00 6 Total Fixed costs (product and period) $ 50,000 7 A wholesaler has indicated they would like to make a special order. The company will incur additional shipping costs for the special order as indicated below. Other information for the special order is as follows: Units in special order Selling price per bear for the special order Shipping costs per bear (incurred by Bear Stuff) $ 12,000 25.00 3.00 Assume the special order will not impact sales to regular customers. If Bear Stuff accepts the special order, they will need to purchase a new piece of equipment costing $40,000. Cost of new equipment for the special order 10,000 14 15 Determine the following if the company were to accept the special order (show all amounts as positive numbers): (5 marks) 16 17 Revenue from Special Order T8 19 Total Variable Costs incurred for Special Order Contribution Margin from Special Order 20 Fixed Costs of Special Order 21 Increase in Profit (Loss) if Special Order is Accepted 22 contribution Margin from Special Order Fixed Costs of Special Order 21 Increase in Profit (Loss) if Special Order is Accepted 23 Based on the quantitative analysis, should the special order be 24 accepted (yes or no) - 1 mark? 26 Part 8: What is a qualitative (non-financial) factor to consider when looking at a special order? (1 marks) 27 28

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!