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Hi there, can you plz help to Calculate the total Operating Profit/Loss for 2017 if the special order is accepted. Based on your calculations, should...

Hi there, can you plz help to


Calculate the total Operating Profit/Loss for 2017 if the special order is accepted. Based on your calculations, should the special order be accepted? Why?

Calculate the total costs that are relevant to the special order only (i.e. 90 000 units).

INFORMATION

The following Budgeted Statement of Comprehensive Income is for a manufacturer which has received a special order to sell 90 000 units of a product at R33 per unit during December 2017. Planned sales for 2017 (excluding the special order) were 240 000 units whilst the plant capacity was 300 000 units. Fixed costs would increase by R180 000 if the special order is accepted since the plant capacity has to be increased.



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Top Answer

answer 1 total operating profit after accepting =... View the full answer

2 comments
  • Dear ujjawal2610, can you please help with the calculations, they do not seem to clear please. Thanks again
    • knundoo
    • May 16, 2018 at 12:58am
  • sales is 90000 x $33, variable cost rate = total variable cost / 240000 the same rate multiplied with 90000 gets 2790000 and fixed cost 180000(given ) is added to get total cost and than net income is sales - total cost = 0
    • ujjawal2610
    • May 16, 2018 at 10:53am

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