Exhibit 1 WePRINT COMPANY Summary of Monthly Operating Costs Monthly costs at 150,000 volume Manufacturing costs: Direct material - variable $ 4,500 Direct labor - variable 1,500 Direct labor - fixed 3,000 Manufacturing overhead - variable 1,500 Manufacturing overhead - fixed 3,375 Total manufacturing costs $15,375 Nonmanufacturing costs: Sales - variable 1,500 Sales - fixed 1,875 Corporate - fixed 3,750 Total nonmanufacturing costs Total costs $ 7,125 $22 500 ,. 1. Consider the special order from Abbie Philips. a. WePrint currently is operating at around full capacity: 150,000 brochures. Should Wilson accept the special order and what would be the dollar impact on Operating Income if the order was accepted

Since the company has not reached full capacity, it should accept the order. It will bring in an additional revenue of $1,000 and an additional operating income of $995.

Explanation:

a) Data and Calculations:

Summary of Monthly Operating Costs

Monthly costs at 150,000 volume

Manufacturing costs:

Direct material - variable $ 4,500

Direct labor - variable 1,500

Direct labor - fixed 3,000

Manufacturing overhead - variable 1,500

Manufacturing overhead - fixed 3,375

Total manufacturing costs $15,375

Nonmanufacturing costs:

Sales - variable 1,500

Sales - fixed 1,875

Corporate - fixed 3,750

Total nonmanufacturing costs $ 7,125

Total costs $22 500

Manufacturing costs: 150,000 Per Unit Relevant Cost/Unit

Direct material - variable $ 4,500 $0.03 $0.03

Direct labor - variable 1,500 0.01 0.01

Direct labor - fixed 3,000 0.02

Manufacturing overhead - variable 1,500 0.01 0.01

Manufacturing overhead - fixed 3,375 0.02

Total manufacturing costs $15,375 0.09 0.05

Nonmanufacturing costs:

Sales - variable 1,500 0.01

Sales - fixed 1,875 0.01

Corporate - fixed 3,750 0.03

Total nonmanufacturing costs $ 7,125 0.05

Total costs $22 500 0.14 0.05