please answer d and give details calculation thank u Problem 2Friendly Company produces a single product. Recently, the company received a special order from alarge national public corporation that wants to purchase 900 units of the company's product at $110each. Friendly Company's usual individual orders are no more than 25 units. So, this proposed 900-unit order is much larger than their usual order.The order will not affect the selling price to regular customers.Friendly Company's income statement for the past month is as follows:Sales (1,200 units)Cost of goods soldGross profitSelling and administrative expenses$144,000- 108,000$ 36,00010,000$ 26,000Net incomeThere was no beginning or ending inventories of work-in-process or finished goods. For the monthpresented, the company's detailed manufacturing costs were as follows:Direct materials ($20/unit)Direct labor ($32/unit)Variable manufacturing overhead ($18/unit)Fixed manufacturing overhead ($20/unit)$24,00038,40021,60024,000$108,000$90TotalAverage cost per unitSelling and administrative expenses are all fixed.Required:a. Assuming the company has sufficient productive capacity to supply the special order, prepare ananalysis of the relevant costs and revenues associated with the special order. Please show yourwork.b. Given the analysis above, should the company accept or reject the special order? Please explainyour answer, briefly.c. Suggest 3 qualitative, i.e. non-financial, issues the company should consider when deciding onproviding this special order.d. Assuming the company does not have excess capacity to produce the special order and will haveto shift production from their normal customers to meet the order, determine the net financialadvantage or disadvantage (profit increase or decrease) of accepting the order. Please show yourwork.Under the assumptions given in part d. and based on your analysis, do you recommend acceptingor rejecting the special order? Please explain your answer, briefly.е.

Contribution margin: It refers to the total earnings available to the firm to pay fixed expenses and…

Problem 2 Friendly Company produces a single product. Recently, the company received a special order from a large national public corporation that wants to purchase 900 units of the company's product at $110 each. Friendly Company's usual individual orders are no more than 25 units. So, this proposed 900- unit order is much larger than their usual order. The order will not affect the selling price to regular customers. Friendly Company's income statement for the past month is as follows:

Problem 2 Friendly Company produces a single product. Recently, the company received a special order from a large national public corporation that wants to purchase 900 units of the company's product at $110 each. Friendly Company's usual individual orders are no more than 25 units. So, this proposed 900- unit order is much larger than their usual order. The order will not affect the selling price to regular customers. Friendly Company's income statement for the past month is as follows:

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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