Required informationDwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended-stay hotels.Each desk sells for $140 (without chair). The cost of each desk follows:MaterialsLaborVariable overheadFixed overhead ($286,000 per month, 13,000 units per month)Total costs per unitThe local university is building a new dorm and asked Dwight for a special price of $114 for an order of 900 desks.Dwight's can fill the order using existing capacity without affecting total fixed costs for the month. However, because thesale would be to a state agency, Dwight would have to file specified compliance documents with the state purchasingoffice. Dwight's manager estimates that the time and expenses incurred by this filing will amount to $7,440 and isindependent of the number of desks ordered. Dwight's manager sunsure whether to accept this order and wants youradvice.Required:a. Prepare a schedule to show the impact of providing the special order of 900 desks on Dwight's profits in addition to the regularproduction and sales of 13,000 desks per month.Complete this question by entering your answers in the tabs below.b. Based solely on the data given, what is the lowest price per unit at which the desks could be sold to the university without reducingDwight's profits?Required A Required BSales revenueLess variable costs:MaterialsLaborVariable overheadPrepare a schedule to show the impact of providing the special order of 900 desks on Dwight's profits in addition to theregular production and sales of 13,000 desks per month. (Enter your answers in thousands rounded to 1 decimal place. (i.e.,5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" ifthere is no effect.)Total variable costContribution marginLess: Fixed costsOperating profitStatus Quo13,000 Desks$Show Transcribed Text(Thousands of Dollars)Alternative13,900 Desks0.0 $Required ALowest price0.0DifferenceMaterials.LaborVariable overheadFixed overhead ($286,000 per month, 13,000 units per month)Total costs per unit.$ 4247Required B >Required informationDwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended-stay hotels.Each desk sells for $140 (without chair). The cost of each desk follows:1222$ 123per deskThe local university is building a new dorm and asked Dwight for a special price of $114 for an order of 900 desks.Dwight's can fill the order using existing capacity without affecting total fixed costs for the month. However, because thesale would be to a state agency, Dwight would have to file specified compliance documents with the state purchasingoffice. Dwight's manager estimates that the time and expenses incurred by this filing will amount to $7,440 and isindependent of the number of desks ordered. Dwight's manager unsure whether to accept this order and wants youradvice.Complete this question by entering your answers in the tabs below.Required:a. Prepare a schedule to show the impact of providing the special order of 900 desks on Dwight's profits in addition to the regularproduction and sales of 13,000 desks per month.< Required Ab. Based solely on the data given, what is the lowest price per unit at which the desks could be sold to the university without reducingDwight's profits?$ 42471222$ 123Required A Required BBased solely on the data given, what is the lowest price per unit at which the desks could be sold to the university withoutreducing Dwight's profits?Required B

In order to accept a special order , the fixed cost does not change and must not be considered as…

erhead mead ($286,000 per month, 13,000 units per month) =ts per unit $ 42 47 12 22 $ 123 ersity is building a new dorm and asked Dwight for a special price of $114 for an order of 9 ill the order using existing capacity without affecting total fixed costs for the month. Howev to a state agency, Dwight would have to file specified compliance documents with the stat s manager estimates that the time and expenses incurred by this filing will amount to $7,44 of the number of desks ordered. Dwight's manager is unsure whether to accept this order.

erhead mead ($286,000 per month, 13,000 units per month) =ts per unit $ 42 47 12 22 $ 123 ersity is building a new dorm and asked Dwight for a special price of $114 for an order of 9 ill the order using existing capacity without affecting total fixed costs for the month. Howev to a state agency, Dwight would have to file specified compliance documents with the stat s manager estimates that the time and expenses incurred by this filing will amount to $7,44 of the number of desks ordered. Dwight's manager is unsure whether to accept this order.

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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