
Concept Introduction:
Special Order: Special Order are the orders which company does not anticipate while preparing their budget for the year. These order are the special opportunity for the company to earn additional revenue.
Excess Capacity: The Excess production capacity is the capacity of machine to produce the extra product without harming the original production plans.
Variable Cost: The variable cost are the cost which is directly associated with output. This cost includes direct labour cost and material cost, etc.
Fixed Cost : Fixed Cost are the cost which is independent of output. It includes rental cost. This cost remains constant throughout the relevant range of output.
Requirement 1
To Prepare:
1. Differential analysis to show whether Hungry-Cardz to accept special sales order or not
Requirement 2
To Prepare:
1. Differential Analysis for Hungry Cardz to accept special order , if it involves fixed cost of $5,000

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Chapter 25 Solutions
Horngren's Accounting
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