Special Order Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,000 pairs of boots at a price of $50.00 per pair. Pope's normal selling price is $65.00 per pair of boots. Variable manufacturing costs are $35.00 per pair and fixed manufacturing costs are $12.00 a pair. Pope's variable selling expense for its normal line of boots is $1.00 per pair. What would the effect on Pope's operating income be if the company accepted the special order? Pope's operating income would ◆ by $ if the order was accepted.
Special Order Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,000 pairs of boots at a price of $50.00 per pair. Pope's normal selling price is $65.00 per pair of boots. Variable manufacturing costs are $35.00 per pair and fixed manufacturing costs are $12.00 a pair. Pope's variable selling expense for its normal line of boots is $1.00 per pair. What would the effect on Pope's operating income be if the company accepted the special order? Pope's operating income would ◆ by $ if the order was accepted.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 2CMA
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Please Correct solution with Explanation And Do not Give solution in image format
![Special Order
Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new
customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,000 pairs of boots at a price of
$50.00 per pair. Pope's normal selling price is $65.00 per pair of boots. Variable manufacturing costs are $35.00 per pair
and fixed manufacturing costs are $12.00 a pair. Pope's variable selling expense for its normal line of boots is $1.00 per
pair.
What would the effect on Pope's operating income be if the company accepted the special order?
Pope's operating income would
◆ by $
if the order was accepted.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c2c2f9b-c8de-48f6-b914-06d2bfc90071%2F466f6f08-c126-45bf-a506-17afae77a488%2F5bpbfwh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Special Order
Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new
customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,000 pairs of boots at a price of
$50.00 per pair. Pope's normal selling price is $65.00 per pair of boots. Variable manufacturing costs are $35.00 per pair
and fixed manufacturing costs are $12.00 a pair. Pope's variable selling expense for its normal line of boots is $1.00 per
pair.
What would the effect on Pope's operating income be if the company accepted the special order?
Pope's operating income would
◆ by $
if the order was accepted.
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