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Author Question: Snapper Tool Company has plenty of excess capacity to accept a special order. Shown below is an ... (Read 48 times)

tiara099

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on: Mar 6, 2021
Snapper Tool Company has plenty of excess capacity to accept a special order.  Shown below is an  "what-if" analysis  of the special order. Which of the following is the correct decision and reason?


​Status QuoWith Special Order
Sales$128,000$133,000
variable costs:​​
Manufacturing51,20054,400
Selling and administrative25,60026,600
Contribution margin$51,200$52,000
Fixed cost19,20019,200
Operating profit$32,000$32,800

◦ Yes, since the goal is to fill capacity as much as possible to keep fixed overhead variances as low as possible.
◦ No, the company will only break even.
◦ No, since only the employees will benefit from this in that they will earn more overtime.
◦ Yes, since operating profits will most likely increase.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by tiara099 on Mar 6, 2021

rnehls

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tiara099

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

sarah_brady415

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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