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.
Answers: 2
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Lattimer Company had the following results of operations for the past year:
Sales (15,0...
Sales (15,0...
Computers and Technology, 03.02.2020 23:49