Question: CALCULATOR LACK PRINTER VERSION Current Designs 7-1 (Part 1) a Current Designs faces a number of important decisions that require incremental analysis. Recently, Mike Cichanowski,
CALCULATOR LACK PRINTER VERSION Current Designs 7-1 (Part 1) a Current Designs faces a number of important decisions that require incremental analysis. Recently, Mike Cichanowski, owner and CEO of Current Designs, received a phone call from the president of a brewing company. He was calling to inquire about the possibility of Current beverages while paddling down the river on a weekend leisure trip. The company would be interested in purchasing 90 coolers for the upcoming summer. It is willing to pay $255 per cooler. The brewing company would pick up the coolers upon completion of the order. Mike met with Diane Buswell, controller, to identify how much it would cost Current Designs to produce the coolers. After careful analysis, the following costs were identified. Direct materials $77 /unit Variable overhead $15 /unit Direct labor $57 /unit Fixed overhead $900 Current Designs would be able to modify an existing mold to produce the coolers. The cost of these modifications would be approximately $1,700. Prepare an incremental analysis to determine whether Current Designs should accept this special order to produce the coolers. (Enter decrease in set come the enter with negative sign preceding the number or parenthesis, e..-15.000 or (15.000)) Net Income Reject Order Accept Order Increase (Decrease) Revenues $ $ Costs Net Income $ 5 Piran PH analyse
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