Question: there are 3 requires for the question. please make final answers in bold. thx Ironwood Company manufactures a variety of sunglasses. Production information for its

there are 3 requires for the question. please make final answers in bold. thx
there are 3 requires for the question. please make final answers in
bold. thx Ironwood Company manufactures a variety of sunglasses. Production information for
its most popular line, the Clear Vista (CV), follows: Per UHET Sales
price $39.50 Direct materials 8.00 Direct labor 5.00 Variable manufacturing overhead 4.00
Fixed manufacturing overhead 5.00 Total manufacturing cost 52000 Suppose that Ironwood has

Ironwood Company manufactures a variety of sunglasses. Production information for its most popular line, the Clear Vista (CV), follows: Per UHET Sales price $39.50 Direct materials 8.00 Direct labor 5.00 Variable manufacturing overhead 4.00 Fixed manufacturing overhead 5.00 Total manufacturing cost 52000 Suppose that Ironwood has been approached about producing a special order for 1600 units of custom CV sunglasses for a new semiprofessional volleyball league. All units in the special order would be produced in the league's signature colors with a specially designed logo emblem attached to the side of the glasses. The league has offered to pay $33.00 per unit in the special order. Additional costs for the special order total $3.00 per unit for mbing the special frame color and purchasing the emblem with the league's logo that will be attached to the glasses. Required: 1. Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contribution margin Ironwood would make by accepting the special order. 2-a. Calculate die current contribution margin per unit 2-b. Suppose Ironwood is currently operating its production facility at full capacity and accepting the special order would mean reducing production of its regular CV model. Should Ironwood accept the special order in this case? 3. Calculate the special order price per unit at which Ironwood is indifferent between accepting or rejecting the special order Reg 1 Req 2A Req 2B Reg 3 Assume Ironwood has the idle capacity necessary to accommodate the special order. Calculate the additional contrib margin Ironwood would make by accepting the special order. Additional CM $ 25,600 RE Req 2A > en we wel alleurig or rejecting the special order Complete this question by entering your answers in the tabs below. Reg 1 RedA Reg 28 Req3 Calculate the current contribution margin per unit. (Round your answer to 2 decimal places.) Current CM per Unit $ 22.50 Reg1 Reg 20 > Req 1 Req 2A Rela 2B Req 3 Suppose Ironwood is currently operating its production facility at full capacity and accepting the special orde reducing production of its regular CV model. Should Ironwood accept the special order in this case? Should Ironwood accept the special order in this case? No Ren 2A Ron Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Reg 3 Calculate the special order price per unit at which Ironwood is indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.) Special-Order Price 42.50 per Unit

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!