Question: Please show how you were able to solve this problem, I like to see step by step so that I am able to recreate the

Please show how you were able to solve this problem, I like to see step by step so that I am able to recreate the answer

Please show how you were able to solve this problem, I like

Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-prole celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 75 percent (75,000 units) of its capacity: Sales revenue $900,000 Cost of goods sold 375,000 Gross prot $525,000 Operating expenses 18,750 Net operating income $506,250 ' Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent xed. Camino has received an offerfrom a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 20,000 cups for $8 each (total $160,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $60,000 endorsement fee to the wrestling star, but no other increases in xed operating expenses. Required: 1. Complete the incremental analysis of the special order in the table provided below. (Enter per unit answers to 2 decimal places.) Incremental Revenue $ 8.00 $ 160,000 Less: Incremental Costs Variable COGS ' Variable Operating Expenses l Endorsement Fee Incremental Prot ' 2. Should Camino aooept this special order? 0 No (7' Yes 3. If Camino were operating at full capacity, what price would Camino require for the special order? -: References eBook & Resources

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