Visno Monty Company is a leading manufacturer of sunglasses. One of Monty's products protects the eyes from ultraviolet rays. An upscalesporting goods store has contacted Monty about purchasing 29,100 pairs of these sunglasses. Monty's unit manufacturing cost, basedon a full capacity of 246,000 units, is as follows:Direct materialsDirect laborManufacturing overhead (75% fixed)Total manufacturing costs$8Monty's income will627$41Monty also incurs selling and administrative expenses of $74,600 plus $4 per pair for sales commissions. The company has plenty ofexcess manufacturing capacity to use in manufacturing the sunglasses. Monty's normal price for these sunglasses is $44 per pair. Thesporting goods store has offered to pay $36 per pair. Since the special order was initiated by the sporting goods store, no salescommission will be paid.What would be the effect on Monty's income if the special order were accepted?by $

To arrive if the special order must be accepted or not , an incremental analysis must be performed…

Answered: ods store has contacted Monty about…

ods store has contacted Monty about purchasing 29,100 pairs of these sunglasses. Mon acity of 246,000 units, is as follows: erials ar ring overhead (75% fixed) facturing costs $8 6 27 $41

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1MC: Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses...

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