Current Designs faces a number of important decisions that require incremental analysis. Recently, James Smith, owner and CEO of Current Designs, received a phone call from the president of a brewing company. He was calling to inquire about the possibility of Current Designs producing "floating coolers" for a promotion his company was planning. These coolers resemble a kayak but are about one-third the size. They are used to float food and beverages while paddling down the river on a weekend leisure trip. The company would be interested in purchasing 70 coolers for the upcoming summer. It is willing to pay $245 per cooler. The brewing company would pick up the coolers upon completion of the order. James met with Mary Johnson, controller, to identify how much it would cost Current Designs to produce the coolers. After careful analysis, the following costs were identified.

Current Designs faces a number of important decisions that require incremental analysis. Recently, James Smith, owner and CEO of Current Designs, received a phone call from the president of a brewing company. He was calling to inquire about the possibility of Current Designs producing "floating coolers" for a promotion his company was planning. These coolers resemble a kayak but are about one-third the size. They are used to float food and beverages while paddling down the river on a weekend leisure trip. The company would be interested in purchasing 70 coolers for the upcoming summer. It is willing to pay $245 per cooler. The brewing company would pick up the coolers upon completion of the order. James met with Mary Johnson, controller, to identify how much it would cost Current Designs to produce the coolers. After careful analysis, the following costs were identified.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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