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Business, 05.05.2020 02:38 Ryan02717

Lattimer Company had the following results of operations for the past year:

Sales (15,000 units at $12.25) $ 183,750
Variable manufacturing costs $ 101,250
Fixed manufacturing costs 24,750
Selling and administrative expenses (all fixed) 39,750 (165,750 )
Operating income $ 18,000

A foreign company whose sales will not affect Lattimer's market offers to buy 5,500 units at $8.00 per unit. In addition to existing costs, selling these units would add a $0.30 selling cost for export fees. Lattimer’s annual production capacity is 25,000 units.

If Lattimer accepts this additional business, the special order will yield a:

A. $3,850 loss. B. $6,875 profit. C. $2,200 loss. D. $5,225 profit. E. $9,350 loss.

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Lattimer Company had the following results of operations for the past year:

Sales (15,0...

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