Company is appr ched by a new customer to provide 1,680 units of its product at a special price of $6 per unit. The normal selling price of the product is $8 per unit. Helix is operating at 80% of its capacity of 10,900 units. No incremental fixed overhead will be incurred because of this order. Also, there will be no incremental fixed general and administrative costs because of this order. a. Special selling price of $6.00 per unit b. Direct materials of $1.00 per unit c. Direct labor of $2.00 per unit d. Variable overhead of $1.50 per unit e. Fixed overhead of $.70 per unit f. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? SPECIAL OFFER ANALYSIS Per Unit Sales Variable costs Direct materials Direct labor Total Activate Go to Setting

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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e. Fixed overhead of $.70 per unit
f. Fixed general and administrative costs of $.60 per unit
Based on income, should Helix accept this new customer order at the special price?
Sales
Variable costs
SPECIAL OFFER ANALYSIS
Direct materials
Direct labor
Variable overhead
Contribution margin
Fixed costs
Fixed overhead
Fixed general and administrative
Income (loss)
$
Per Unit
0.00
0.00 $
Total
0
Transcribed Image Text:e. Fixed overhead of $.70 per unit f. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? Sales Variable costs SPECIAL OFFER ANALYSIS Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income (loss) $ Per Unit 0.00 0.00 $ Total 0
Helix Company is approached by a new customer to provide 1,680 units of its product at a special price of $6 per unit. The
normal selling price of the product is $8 per unit. Helix is operating at 80% of its capacity of 10,900 units. No incremental
fixed overhead will be incurred because of this order. Also, there will be no incremental fixed general and administrative
costs because of this order.
a. Special selling price of $6.00 per unit
b. Direct materials of $1.00 per unit
c. Direct labor of $2.00 per unit
d. Variable overhead of $1.50 per unit
e. Fixed overhead of $.70 per unit
f. Fixed general and administrative costs of $.60 per unit
Based on income, should Helix accept this new customer order at the special price?
SPECIAL OFFER ANALYSIS
Sales
Variable costs
Direct materials
Direct labor
Per Unit
co
Total
Activate
Go to Setting
Transcribed Image Text:Helix Company is approached by a new customer to provide 1,680 units of its product at a special price of $6 per unit. The normal selling price of the product is $8 per unit. Helix is operating at 80% of its capacity of 10,900 units. No incremental fixed overhead will be incurred because of this order. Also, there will be no incremental fixed general and administrative costs because of this order. a. Special selling price of $6.00 per unit b. Direct materials of $1.00 per unit c. Direct labor of $2.00 per unit d. Variable overhead of $1.50 per unit e. Fixed overhead of $.70 per unit f. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? SPECIAL OFFER ANALYSIS Sales Variable costs Direct materials Direct labor Per Unit co Total Activate Go to Setting
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