Explain the significance of the statement in the exercise

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Reference no: EM131097011

Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. the new customer is geographically separated from smooth move's other customers and existing sales will not be affected. smooth move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. the normal sales price is $12 per unit unit cost information is as follows.direct materials $3.10direct labor 2.25variable overhead 1.15fixed overhead 1.80total 8.30refer to the information for smooth move company above if smooth move accepts the order no fixed manufacturing activities will be affected because there is sufficient excess capacity.require;1-what are the alternatives for smooth move.2-conceptual connection should smooth move accept the special order.by how much will profit increase or decrease if the order is accepted.3-conceptual connection briefly explain the significance of the statement in the exercise that existing sale will not be affected by the special sale.

Reference no: EM131097011

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