Grill Time Sells Its Barbecue Sets for $170 Each * $ 1,800,000 / 75,000 Units
Grill Time Has Enough

question 122

Essay

Grill Time sells its barbecue sets for $170 each.Suppose the company incurs the following average cost per barbecue set:
$$\begin{array} { l l } \text { Direct materials } & \$ 52 \\\text { Direct labor } & 28 \\\text { Variable manufacturing overhead } & 11 \\\text { Variable selling expenses } & 5 \\\text { Fixed manufacturing overhead* } & 2 4 \\\text { Total cost } & \$ 120\end{array}$$ * $ 1,800,000 / 75,000 units
Grill Time has enough idle capacity to accept a one-time-only special order from Backyard Living,Inc.for 2,000 barbecue sets at a sales price of $130 per set.Grill Time will not incur $2 of variable selling expenses for this order.
How would accepting the order affect Grill Time's operating income?

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Definitions:

Job Satisfaction

A measure of how content an individual is with their job, including aspects like work environment, pay, and fulfillment from the work itself.

Coworkers

Individuals who work together in the same organization or on the same team.

Transparent

Characteristics of an object or process that is easily seen through or understood, often used metaphorically to describe openness and honesty in communication.

Engagement

The degree of enthusiasm and dedication an individual exhibits towards their work or activities, often leading to higher productivity and satisfaction.