Please need answer the accounting question do fast Minor Electric has received a special one-time order for 1,500 light fixtures (units) at$5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This levelrepresents 75% of its capacity.Production costs for these units are $4.50 per unit, which includes a $3.00 variablecost and a $1.50 fixed cost. To produce the special order, a new machine needs tobe purchased at a cost of $1,000 with a zero salvage value. Management expects noother changes in costs as a result of the additional production.If Minor wishes to earn $1,250 on the special order, the size of the order would needto be:A) 4,500 units.B) 2,250 units.C) 1,125 units.D) 625 units.E) 300 units.

Step 1: Define CVP AnalysisCVP analysis (Cost, Volume, Profit) is used to assess product viability…

Answered: Minor Electric has received a special…

Principles of Accounting Volume 2

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Chapter10: Short-term Decision Making

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Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,250 on the special order, the size of the order would need to be:
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Special Order Plastic Pipe Company manufactures a variety of pipes, and has received a special one-time-only order from a new customer. Plastic Pipe has sufficient idle capacity to accept the special order to manufacture 1,200 16-foot lengths of pipe at a price of $11.00 per pipe. Plastic Pipe's normal selling price is $12.00 per 16-foot length. Variable manufacturing costs are $7.00 per pipe and fixed manufacturing costs are $1.00 per pipe. Plastic Pipe's variable selling expense for its normal line of pipes is $0.50 per pipe. What would the effect on Plastic Pipe's operating income be if the company accepted the special order? Plastic Pipe's operating income would increase ♦ by $4,200 Xif the order was accepted.
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