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Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. overhead $11 $18 traceable/avoidable fixed $15 $13 vole selling & admin $5 $6 allocated/unavoidable fixed $18 $11 total cost per unit $$___ Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,627 "Rocks" for $44 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are half as regular units and one new fixed costs is needed to stamp their logo on the items, costing $4,000. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative.

Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. overhead $11 $18 traceable/avoidable fixed $15 $13 vole selling & admin $5 $6 allocated/unavoidable fixed $18 $11 total cost per unit $$___ Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,627 "Rocks" for $44 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are half as regular units and one new fixed costs is needed to stamp their logo on the items, costing $4,000. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative.

FINANCIAL ACCOUNTING
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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Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. overhead $11 $18 traceable/avoidable fixed $15 $13 vole selling & admin $5 $6 allocated/unavoidable fixed $18 $11 total cost per unit $$___ Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,627 "Rocks" for $44 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are half as regular units and one new fixed costs is needed to stamp their logo on the items, costing $4,000. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative.
Transcribed Image Text:Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. overhead $11 $18 traceable/avoidable fixed $15 $13 vole selling & admin $5 $6 allocated/unavoidable fixed $18 $11 total cost per unit $$___ Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,627 "Rocks" for $44 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are half as regular units and one new fixed costs is needed to stamp their logo on the items, costing $4,000. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative.
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