**Nardin Outfitters Special Order Analysis**Nardin Outfitters can manufacture 18,500 special arctic tents annually. Currently, they are producing and selling 5,000 tents each year at a price of $1,550 per tent. Below are the detailed costs per tent:- **Variable manufacturing costs:** $570- **Fixed manufacturing costs:** $155- **Variable selling and administrative costs:** $145- **Fixed selling and administrative costs:** $115- **Total costs:** $985**Special Order Details:**The company has been offered a special order for 1,800 tents at $730 per tent from Chipman Outdoor Center. Notably, there would be no sales commission on this deal, reducing the variable selling and administrative costs to $58 per tent. The fixed costs remain unchanged. The company decided not to accept this offer, based on the following calculations:- **Selling price per case:** $730- **Variable manufacturing costs:** $570- **Fixed manufacturing costs:** $155- **Variable selling and administrative costs:** $58- **Fixed selling and administrative costs:** $115- **Net profit (loss) per case:** $(168)**Required Analysis:**a. What is the impact on profit for the year if Nardin Outfitters accepts the special order?b. Do you agree with the decision to reject the special order?Please complete this analysis by entering your responses in the provided tabs below.

50 per tent. 5 per year at a selling price of manufacturing costs anufacturing costs e selling and administrative costs elling and administrative costs costs cost of producing and selling $ 570 155 145 115 $985 ent follows. any has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will r ales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. uld have no effect on total fixed costs. The company has rejected the offer based on the following computations:

50 per tent. 5 per year at a selling price of manufacturing costs anufacturing costs e selling and administrative costs elling and administrative costs costs cost of producing and selling $ 570 155 145 115 $985 ent follows. any has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will r ales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. uld have no effect on total fixed costs. The company has rejected the offer based on the following computations:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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