#26

Question 26 10 pts Goodfellow Company had the following results of operations for the past year: Sales (8,000 units at $6.80) $54,400 Materials and direct labor (20,000) Overhead (40% variable) (10.000) Selling and administrative expenses (all fixed) _(6.000). Operating income $18.400 A foreign company (whose sales will not affect Goodfellow's regular sales) offers to buy 2,000 units at $5.00 per unit. In addition to variable manufacturing costs, there would be shipping costs of $1,200 in total on these units. Prepare an analysis of this additional business to show whether Goodfellow should take this order