i need the answer quickly Adams Furniture receives a special order for 10 sofas for a special price of $4,600. The direct materials and direct labor for eachsofa are $180. In addition, supervision and other fixed overhead costs average $230 per sofa.Required:a1. What is the impact on operating income from accepting the special order?a2. Based solely on a short-term financial analysis, should Adams accept the special order?b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers ifthe special sales order is accepted and the selling price per unit on regular sales equals $550?b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity?Complete this question by entering your answers in the tabs below.Req a1Req a2Req b1Req b2If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customersif the special sales order is accepted and the selling price per unit on regular sales equals $550?Opportunity costper sofa

Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Answered: Adams Furniture receives a special…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct materials and direct labor for each sofa are $140. In addition, supervision and other fixed overhead costs average $160 per sofa. Required: a1. What is the impact on operating income from accepting the special order? a2. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $900? b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity?
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