2-a. Compute both the new average unit cost and the incremental unit cost for the special order. 2-b. Should Winner's Circle, Inc. accept the special order? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Compute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediate calculations. Round your answers to 2 decimal places.) New average unit cost Incremental unit cost Show Transcribed Text 2-a. Compute both the new average unit cost and the incremental unit cost for the special order. 2-b. Should Winner's Circle, Inc. accept the special order? Req 2A Complete this question by entering your answers in the tabs below. Req 2B S Should Winner's Circle, Inc. accept the special order? Should management accept the special order?
2-a. Compute both the new average unit cost and the incremental unit cost for the special order. 2-b. Should Winner's Circle, Inc. accept the special order? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Compute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediate calculations. Round your answers to 2 decimal places.) New average unit cost Incremental unit cost Show Transcribed Text 2-a. Compute both the new average unit cost and the incremental unit cost for the special order. 2-b. Should Winner's Circle, Inc. accept the special order? Req 2A Complete this question by entering your answers in the tabs below. Req 2B S Should Winner's Circle, Inc. accept the special order? Should management accept the special order?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give image format
![Required information
[The following information applies to the questions displayed below.]
Winner's Circle, Inc. manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the
capacity to produce 2,900 medals each month. Current monthly production is 2,175 medals. The company normally
charges $510 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as
follows:
Production Costs.
Variable costs:
Manufacturing:
Direct labor
Direct material
Marketing
Total variable costs
Fixed costs:
Manufacturing
Marketing
Total fixed costs.
Total costs
Variable cost per unit
Fixed cost per unit
Average unit cost.
$ 348,000
206,625
163, 125
717,750
$
$ 208,350
161,400
$ 369,750
$1,087,500
$
$
330
170
500
Winner's Circle has just received a special one-time order for 725 medals at $285 per medal. For this particular order, no
variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been
assigned the task of analyzing this order and recommending whether the company should accept or reject it. After
examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request
competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in
line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later
discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29a6cc4b-ac67-49e8-91c6-8d8e67d1350e%2Ff6897d48-496e-4c60-b202-6a6e87af4de9%2Fys599l6_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Winner's Circle, Inc. manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the
capacity to produce 2,900 medals each month. Current monthly production is 2,175 medals. The company normally
charges $510 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as
follows:
Production Costs.
Variable costs:
Manufacturing:
Direct labor
Direct material
Marketing
Total variable costs
Fixed costs:
Manufacturing
Marketing
Total fixed costs.
Total costs
Variable cost per unit
Fixed cost per unit
Average unit cost.
$ 348,000
206,625
163, 125
717,750
$
$ 208,350
161,400
$ 369,750
$1,087,500
$
$
330
170
500
Winner's Circle has just received a special one-time order for 725 medals at $285 per medal. For this particular order, no
variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been
assigned the task of analyzing this order and recommending whether the company should accept or reject it. After
examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request
competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in
line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later
discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor.
![2-a. Compute both the new average unit cost and the incremental unit cost for the special order.
2-b. Should Winner's Circle, Inc. accept the special order?
Complete this question by entering your answers in the tabs below.
Req 2A
Req 2B
Compute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
New average unit cost
Incremental unit cost
Show Transcribed Text
2-a. Compute both the new average unit cost and the incremental unit cost for the special order.
2-b. Should Winner's Circle, Inc. accept the special order?
Req 2A
Complete this question by entering your answers in the tabs below.
Req 2B
Ć
Should Winner's Circle, Inc. accept the special order?
Should management accept the special order?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29a6cc4b-ac67-49e8-91c6-8d8e67d1350e%2Ff6897d48-496e-4c60-b202-6a6e87af4de9%2F66e6g5b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2-a. Compute both the new average unit cost and the incremental unit cost for the special order.
2-b. Should Winner's Circle, Inc. accept the special order?
Complete this question by entering your answers in the tabs below.
Req 2A
Req 2B
Compute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
New average unit cost
Incremental unit cost
Show Transcribed Text
2-a. Compute both the new average unit cost and the incremental unit cost for the special order.
2-b. Should Winner's Circle, Inc. accept the special order?
Req 2A
Complete this question by entering your answers in the tabs below.
Req 2B
Ć
Should Winner's Circle, Inc. accept the special order?
Should management accept the special order?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education