Sate Awards has had a request for a special order of 10 silver plated temphies from...

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Sate Awards has had a request for a special order of 10 silver plated temphies from the provincial tennis asmcation. The normal selling price of cha unh44.00 shown below Direct materials Direct labour Manufacturing overhead Unit product cost $ 136.00, 84.00 36.00 S 256.00 peratura Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any giveu pod Howeves, 59 of the overed in vari produced. The customer would like a special logo applied to the trophies requiring additional materials conting 58 per tmphy and would also repine acquisition of a special to o other use once the special order was completed. This order would have no effect on the company's regilar sales, and the order could be filled using the company's existing capacity order Required: a. What effect would be accepting this order have on the company's operating income if a special price of $344.00 is offered per trophy for this order? (ark) b. Should the special order be accepted at this price? (2 marks) wwild bes Sate Awards has had a request for a special order of 10 silver plated temphies from the provincial tennis asmcation. The normal selling price of cha unh44.00 shown below Direct materials Direct labour Manufacturing overhead Unit product cost $ 136.00, 84.00 36.00 S 256.00 peratura Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any giveu pod Howeves, 59 of the overed in vari produced. The customer would like a special logo applied to the trophies requiring additional materials conting 58 per tmphy and would also repine acquisition of a special to o other use once the special order was completed. This order would have no effect on the company's regilar sales, and the order could be filled using the company's existing capacity order Required: a. What effect would be accepting this order have on the company's operating income if a special price of $344.00 is offered per trophy for this order? (ark) b. Should the special order be accepted at this price? (2 marks) wwild bes

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Sator Awards Special Order Analysis a Effect on Operating Income Step 1 Calculate variable cost per ... View the full answer