14. Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $11.80) $177,000 Variable manufacturing costs $94,500 Fixed manufacturing costs 18,000 Selling and administrative expenses (all fixed) 33,000 (145,500) Operating income $31,500 A foreign company whose sales will not affect Lattimer's market offers to buy 4,600 units at $7.10 per unit. In addition to existing costs, selling these units would add a $0.21 selling cost for export fees. If Lattimer accepts this additional business, the special order will yield a: $3,680 profit. $2,714 profit. $7,406 loss. $1,840 loss. $2,806 loss.

15. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.00; direct labor, $23.00, and overhead, $15.00. An outside supplier has offered to sell the product to Wheeler for $41.45. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying. $2.89 savings per unit. $2.89 cost per unit. $1.20 cost per unit. $2.70 cost per unit. $1.20 savings per unit.

15. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.00; direct labor, $23.00, and overhead, $15.00. An outside supplier has offered to sell the product to Wheeler for $41.45. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying. $2.89 savings per unit. $2.89 cost per unit. $1.20 cost per unit. $2.70 cost per unit. $1.20 savings per unit.

15. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.00; direct labor, $23.00, and overhead, $15.00. An outside supplier has offered to sell the product to Wheeler for $41.45. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying. $2.89 savings per unit. $2.89 cost per unit. $1.20 cost per unit. $2.70 cost per unit. $1.20 savings per unit.