please answer both parts complete and correct with working please answer in text thanks Nardin Outfitters has a capacity to produce 20,500 of their special arctic tents per year. The company is currently producing andselling 5,000 tents per year at a selling price of $1,750 per tent. The cost of producing and selling one tent follows:Variable manufacturing costsFixed manufacturing costsVariable selling and administrative costsFixed selling and administrative costsTotal costsThe company has received a special order for 2,200 tents at a price of $770 per tent from Chipman Outdoor Center. It will not have topay any sales commission on the special order, so the variable selling and administrative costs would be only $62 per tent. The specialorder would have no effect on total fixed costs. The company has rejected the offer based on the following computations:Selling price per caseVariable manufacturing costsFixed manufacturing costsVariable selling and administrative costsFixed selling and administrative costsNet profit (loss) per case$ 610175165135$ 1,085Required:a. What is the impact on profit for the year if Nardin Outfitters accepts the special order?b. Do you agree with the decision to reject the special order?Complete this question by entering your answers in the tabs below.Required A$ 77061017562135$ (212)Required BWhat is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousandsrounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping StatusQuo as the base. Select "none" if there is no effect.)Sales revenueVariable costs:ManufacturingSelling and administrative(All revenues and costs in $000)Status QuoAlternative5000 Units7200 UnitsDifference Net profit (loss) per caseRequired:a. What is the impact on profit for the year if Nardin Outfitters accepts the special order?b. Do you agree with the decision to reject the special order?Complete this question by entering your answers in the tabs below.Required ARequired BWhat is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousandsrounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping StatusQuo as the base. Select "none" if there is no effect.)Sales revenueVariable costs:$ (212)ManufacturingSelling and administrativeContribution marginFixed costsOperating profit(All revenues and costs in $000)Status QuoAlternative7200 Units5000 Units< Required ARequired ARequired BDo you agree with the decision to reject the special order?Do you agree with the decision to reject the special order?< Required ADifferenceRequired B >Required:a. What is the impact on profit for the year if Nardin Outfitters accepts the special order?b. Do you agree with the decision to reject the special order?Complete this question by entering your answers in the tabs below.Required B >

When a customer or consumer desires something that is not regularly stocked or offered as a service,…

Nardin Outfitters has a capacity to produce 20,500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,750 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs The company has received a special order for 2,200 tents at a price of $770 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $62 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case $ 610 175 165 135 $ 1,085 $ 770 610 Required A Required B 175 62 135 $ (212) Required: a. What is the impact on profit for the year if Nardin Outfitters accepts the special order? b. Do you agree with the decision to reject the special order? Complete this question by entering your answers in the tabs below.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q