Lego Company manufactures chairs. Annual maximum capacity is 100,000. It currently produces and sells 75,000 chairs per year. The following information relates to current production: Sale price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative Total fixed costs: Manufacturing $240 $80 decrease of 222,000 increase of 287,700 increase of 81,000 increase of 296,000 $760,000 $220,000 Marketing and administrative Regular sales are not affected by the special order. There is a special order received for 2700 chairs at a price of $350 per uni If the company decides to go ahead with the special order then fixed costs increase by $6,600, and variable marketing and administrative costs for that order are $1 per unit, If a special sales order is accepted how would operating income be affected?

Division A manufactures electronic circuit boards that can be sold to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B $ 178 $ 120 21,000 15,600 5,400 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $210 in additional variable cost per instrument and then sold the instruments for $620 each. Required: 1. Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 21,000 circuit boards. Next year, Division B wants to purchase 6,400 circuit boards from Division A rather than 5,400. (Circuit boards of…

Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.13 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $805,272 per year. Administrative cost (all fixed) totals $614,367. Comer expects to sell 253,600 strings of light next year. Required: 1. Calculate the break-even point in units.fill in the blank 1 units 2. Calculate the margin of safety in units.fill in the blank 2 units 3. Calculate the margin of safety in dollars.$fill in the blank 3 4. Conceptual Connection: Suppose Comer actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: Consider what would happen to the number of break-even units and to the margin of safety.) IncreaseDecrease  Please…

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost Information relating to the products follow: Selling price per unit Variable expenses per unit Product Weedban $ 6.00 $ 2.40 $ 45,000 Greengrow $ 7.50 $ 5.25 $ 21,000 Traceable fixed expenses per year Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Required: Prepare a contribution format Income statement segmented by product lines. × Answer is not complete. Product Line Total Company Weedban Sales Variable expenses Contribution margin $ 300,000 $ 90,000 183,000 → 38,000 ✔ Greengrow $ 210,000 147,000 117,000 54,000 63,000 Traceable fixed expenses Gross margin 66,000 45,000 63,000 x x 51,000 $ 9,000 $ 0 33,000 Net operating income S 18,000