Chapter 14, Problem 56P

1.

To determine

Identify and explain the costs that will be relevant to Person C’s analysis of special order.

2.

To determine

Ascertain whether Incorporation W must accept the special order and calculate both the new average unit cost and the incremental unit cost for the special order.

3.

To determine

Discuss if there is any other considerations that Person D must include in the analysis of the special order.

4.

To determine

List the steps that Person D must take to resolve the ethical conflict arising out of the controllers’ insistence that the company should avoid competitive bidding.

5.

To determine

Construct an Excel to solve requirement 2 and show the manner in which the answer will change if the sales price is $170 per medal.