Ch. 7 Incremental Analysis Pg 461 Self Practice Please solve the following questions and provide and explanation. Thank you "Big Tent Company has received a special order for 10,000 units at a discount price of $100 each.  The product sells for $150, has the following manufacturing costs: " Cost Per Unit Direct Materials $40 Direct Labor $ 20 Variable Manufacturing Overhead $ 20 Fixed Manufacturing Overhead $30 Totaul Unit Cost $110 1) Assume Big Top has enough extra capacity to fill the order without affecting the production or sale of it's product to regular customers. If Big Top accepts offer, what effect will the roder have on the company's short-term profit? 2) If Big Top is at full capacity, what price would be needed to cover all incremental costs, including opportunity costs?

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QUESTION 10 Randall has received a special order for 4300 units of its product at a special price of $20. The product normally sells for $34 and has the following manufacturing costs: AZ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per unit 2 3 3 2 Assume that Randall has sufficient capacity to fill the order. If Randall accepts the order, what effect will the order have on the company's short-term profit? *** If a decrease, place a sign before your answer. For example, a decrease of $1,000 would be answered -1,000.

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Question 1                                                                                                                Easy Efforts Company is in the process of setting a target price for its coffee mug heaters and portable hard drives. The marketing department has projected impressive sales as soon as they launch. Cost data relating to the coffee mug heaters and portable hard drives at a budgeted volume of 4,000 units is as follows:                                                                                       Unit Cost Direct Materials                                                           $120 Direct Labour                                                              $150 Variable Manufacturing overhead cost                         $25 Variable selling and Administrative expenses              $15                                                                                       Total Cost Fixed manufacturing overhead cost                              $650,000 Fixed…

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