RECOMMENDED!!The following Budgeted Statement of Comprehensive Income

  

Calculate the total Operating Profit/Loss for 2017 if the special order is accepted. Based on your calculations, should the special order be accepted? Why?Calculate the total costs that are relevant to the special order only (i.e. 90 000 units).INFORMATIONThe following Budgeted Statement of Comprehensive Income is for a manufacturer which has received a special order to sell 90 000 units of a product at R33 per unit during December 2017. Planned sales for 2017 (excluding the special order) were 240 000 units whilst the plant capacity was 300 000 units. Fixed costs would increase by R180 000 if the special order is accepted since the plant capacity has to be increased.BUDGETED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDEDDECEMBER 2017RSales (240 000 units)11 520 000Manufacturing costs:(9 360 000) Direct materials3 600 000 Direct labour1 440 000Fixed overheads1 920 000Variable overheads2 400 000Gross profit2 160 000Fixed selling, general and administrative costs(720 000)Operating profit1 440 000

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