Question: 3 Sato Awards has had a request for a special order of 10 silver plated trophies from the provinciales action. The coming price of such

 3 Sato Awards has had a request for a special order
of 10 silver plated trophies from the provinciales action. The coming price

3 Sato Awards has had a request for a special order of 10 silver plated trophies from the provinciales action. The coming price of such a trophy is $270.00 and its unit product costs $180.00, as shown below 4 DO Direct materials Direct Labour Manufacturing overhead Unit product cost $100.00 60.00 20.00 $180.00 000 w Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any given period However $5 of the overhead is variable, depending on the number of trophies produced. The customer would like a special logo applied to the trophies requiring additional materials costing $4 per trophy and would also require acquisition of special tool casting $300 that would have no other use once the special order was completed. This order would have no offect on the company's reguint sales, and the order could be filled using the company's existing capacity without affecting any other order Required: a. What effect would accepting this order have on the company's operating income if a special price of $240.00 is offered per trophy for this order? (Do not round Intermediate calculations. Round your answer to 2 decimal places) Net operating income in order would have notect on the company's wt could be filled using the company's existing capacity without affecting the ordet Required What effect would accepting this order have on the company's operating income a special price of $240.00 is onere per trechy for this order? (Do not round Intermediate calculations. Round your answer to 2 decimal places) Neting income b. Should the special order be accepted at this price? o Yes No MC Graw MI

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