Checkprice charged to the distributor?b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributewill generate an increase in operating income of $60,000 more than it would be without accepting the special order?b-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of theprice charged to the distributor?Complete this question by entering your answers in the tabs below.Req A1Req A2Req B1Req B2What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unitprice charged to the distributor? (Do not round intermediate calculations.)At a current operating level of 100,000 units, the company will not have to turn away any of its regularcustomers in order to fiFie special order. If it wishes to increase operating income byperunit included in the special order, it only needs to generate a contribution margin per unit ofThus, the selling price per unit included in the special order isReq A1Req B1< Prev1 of 4Next >23NOV Exercise 21.12 (Static) Pricing a Special Order (LO21-1, LO21-2, LO21-3)Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000units, is as follows:Direct materialsDirect laborOverhead (2/3 of which is variable)Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa hasthe capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.a-1. Assume that Mazęppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge thedistributor which will generate an increase in operating income of $2 per unit?a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unitprice charged to the distributor?b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor whichwill generate an increase in operating income of $60,000 more than it would be without accepting the special order?b-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unitprice charged to the distributor?Complete this question by entering your answers in the tabs below.Req A1Req A2Req B1Req B2Prev1 of 4Next >23NOV17étv li280649%24

Contribution margin refers to the sum of money remaining at a company after deducting all the…

ease in operating income of $60,000 more than it would be without accepting the sp price to ur interpretation of the changes to the contribution margin per unit and the operating inco co the distributor? nis question by entering your answers in the tabs below. Req A2 Req B1 Req B2 nterpretation of the changes to the contribution margin per unit and the operating income on a to the distributor? (Do not round intermediate calculations.)

ease in operating income of $60,000 more than it would be without accepting the sp price to ur interpretation of the changes to the contribution margin per unit and the operating inco co the distributor? nis question by entering your answers in the tabs below. Req A2 Req B1 Req B2 nterpretation of the changes to the contribution margin per unit and the operating income on a to the distributor? (Do not round intermediate calculations.)

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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* CengageNOWv2 | Online teachin x now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $182,500 10 Selling expenses: Sales salaries and commissions 37,900 4 Advertising 12,800 Travel 2,900 Miscellaneous selling expense 3,100 4 Administrative expenses: Office and officers' salaries 37,100 Supplies 4,600 2…
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