i need the answer quickly X Edit & Create vA ShareGolden Company, which manufactures robes, has enough idle capacity available to accept aspecial order of 10,000 robes at $16 each. A predicted income statement for the year withoutthis special order follows:Per UnitTotalSales revenue$25.00$2,500,000Manufacturing costsVariable12.501,250,000Fixed3.50350,000Total manufacturing costs16.001,600,000Gross profit9.00900,000Marketing costsVariable360,000290,0003.60Fixed2.90Total marketing čosts6.50650,000Operating profitS 2.50S 250,000If the order is accepted, variable marketing costs on the special order would be reduced by25percent because all of the robes would be packed and shipped in one lot. However, if theoffer is accepted, management estimates that it will lose the sale of 2,000 robes at regularprices.a. What is the net gain or loss from the special order?b. Write a brief memo to management explaining why you think the company should orshould not take the special order.(CPA adapted)anned with Car自

Net gain or loss is what remains after certain deductions are made from gross profit or loss.

If the order is accepted, variable marketing costs on the special order would be reduced by 25 percent because all of the robes would be packed and shipped in one lot. However, if the offer is accepted, management cstimates that it will lose the sale of 2,000 robes at regular prices. a. What is the net gain or loss from the special order? b. Write a brief memo to management explaining why you think the company should or should not take the special order.

If the order is accepted, variable marketing costs on the special order would be reduced by 25 percent because all of the robes would be packed and shipped in one lot. However, if the offer is accepted, management cstimates that it will lose the sale of 2,000 robes at regular prices. a. What is the net gain or loss from the special order? b. Write a brief memo to management explaining why you think the company should or should not take the special 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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