|-> % H % O O Bradford Cole Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Bradford Cole has enough idle capacity to accept a one-time-only special order from LA Glasses for 22,000 pairs of sunglasses at $63 per pair. Bradford Cole will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accep special order's effect on profits, wh consider in deciding whether to ac Prepare an incremental analysis to any zero balances. Use parenthes special order.) Incremental Analysis of Revenue from special order Less variable expense associated Requirements Data table Direct materials.. Direct labor.. Variable manufacturing overhead. Variable marketing expenses.... Fixed manufacturing overhead 1. How would accepting the order affect Bradford Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Cole's managers consider in deciding whether to accept the order? 2. Bradford Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $63 is less than Bradford Cole's $90 cost to make the sunglasses. Revo asks you, as one of Bradford Cole's staff accountants, to explain whether his analysis is correct $ $ Total cost. * $2,000,000 total fixed manufacturing overhead + 80,000 pairs of sunglasses - 38 13 11 X 3 25* 90 - nswer X
|-> % H % O O Bradford Cole Sunglasses sell for about $152 per pair. Suppose the company incurs the following average costs per pair: (Click the icon to view the cost information.) Bradford Cole has enough idle capacity to accept a one-time-only special order from LA Glasses for 22,000 pairs of sunglasses at $63 per pair. Bradford Cole will not incur any variable marketing expenses for the order. Read the requirements. Requirement 1. How would accep special order's effect on profits, wh consider in deciding whether to ac Prepare an incremental analysis to any zero balances. Use parenthes special order.) Incremental Analysis of Revenue from special order Less variable expense associated Requirements Data table Direct materials.. Direct labor.. Variable manufacturing overhead. Variable marketing expenses.... Fixed manufacturing overhead 1. How would accepting the order affect Bradford Cole's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Bradford Cole's managers consider in deciding whether to accept the order? 2. Bradford Cole's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $63 is less than Bradford Cole's $90 cost to make the sunglasses. Revo asks you, as one of Bradford Cole's staff accountants, to explain whether his analysis is correct $ $ Total cost. * $2,000,000 total fixed manufacturing overhead + 80,000 pairs of sunglasses - 38 13 11 X 3 25* 90 - nswer X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
answer in text form please (without image)
Transcribed Image Text:1-
Bradford Cole Sunglasses sell for about $152 per pair. Suppose the company incurs the following average
costs per pair:
(Click the icon to view the cost information.)
Bradford Cole has enough idle capacity to accept a one-time-only special order from LA Glasses for 22,000
pairs of sunglasses at $63 per pair. Bradford Cole will not incur any variable marketing expenses for the
order.
Read the requirements.
Requirement 1. How would accep
special order's effect on profits, wh
consider in deciding whether to ac
Prepare an incremental analysis to
any zero balances. Use parenthes
special order.)
Incremental Analysis of
Revenue from special order
Less variable expense associated
Requirements
Data table
Direct materials...
Direct labor...
Variable manufacturing overhead.
Variable marketing expenses..
Fixed manufacturing overhead
1. How would accepting the order affect Bradford Cole's operating income? In addition to
the special order's effect on profits, what other (longer-term qualitative) factors should
Bradford Cole's managers consider in deciding whether to accept the order?
$
Total cost.....
* $2,000,000 total fixed manufacturing overhead +
80,000 pairs of sunglasses
2. Bradford Cole's marketing manager, Jim Revo, argues against accepting the special
order because the offer price of $63 is less than Bradford Cole's $90 cost to make the
sunglasses. Revo asks you, as one of Bradford Cole's staff accountants, to explain
whether his analysis is correct.
38
13
11
X
3
25*
90
nswer
X
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