ROWE 100 and Die (RTD) produces meta muungs as a supplier to various manuiacturing mis mure...

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ROWE 100 and Die (RTD) produces meta muungs as a supplier to various manuiacturing mis mure ared. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 46,000 units during the quarter. RTD carries no inventories. Sales revenue Costs of fitting produced Gross profit Administrative costs Operating profit Amount $ 1,209,800 929,200 $ 280,600 213,900 $ 66,700 Per Unit $ 26.30 20.20 $ 6.10 4.65 $ 1.45 Fixed costs included in this income statement are $299,000 for depreciation on plant and machinery and miscellaneous factory operations and $95,000 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20.10 per unit. RTD can easily produce the 10,000 units with its existing capacity. Production of the 10,000 units will incur all variable manufacturing costs but no fixed manufacturing costs. No administrative costs will be incurred because of the order. Required: a. What impact would accepting this special order have on operating profit? b. Should RTD accept the order? Complete this question by entering your answers in the tabs below. Required A Required B What impact would accepting this special order have on operating profit? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue Variable costs: Production Status Quo 46,000 Units Costs and Revenues (Thousands of Dollars) Alternative 56,000 Units Difference < Prev 5 of 7 Next > ROWE 100 and Die (RTD) produces meta muungs as a supplier to various manuiacturing mis mure ared. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 46,000 units during the quarter. RTD carries no inventories. Sales revenue Costs of fitting produced Gross profit Administrative costs Operating profit Amount $ 1,209,800 929,200 $ 280,600 213,900 $ 66,700 Per Unit $ 26.30 20.20 $ 6.10 4.65 $ 1.45 Fixed costs included in this income statement are $299,000 for depreciation on plant and machinery and miscellaneous factory operations and $95,000 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20.10 per unit. RTD can easily produce the 10,000 units with its existing capacity. Production of the 10,000 units will incur all variable manufacturing costs but no fixed manufacturing costs. No administrative costs will be incurred because of the order. Required: a. What impact would accepting this special order have on operating profit? b. Should RTD accept the order? Complete this question by entering your answers in the tabs below. Required A Required B What impact would accepting this special order have on operating profit? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue Variable costs: Production Status Quo 46,000 Units Costs and Revenues (Thousands of Dollars) Alternative 56,000 Units Difference < Prev 5 of 7 Next >