Question
Below is a projected income statement for the coming month (Based on selling 30,000 units) DollarsPer unit Salesrevenue$600,000 $600,000/30,000 units = $20.00 Variable cost of
Below is a projected income statement for the coming month (Based on selling 30,000 units)
DollarsPer unit
Salesrevenue$600,000 $600,000/30,000 units = $20.00
Variable cost of goods sold (225,000) $225,000/30,000 units = $7.50
Variable marketing costs(150,000) $150,000/30,000 units= $5.00
Contributionmargin 225,000 $225,000/30,000 units = $7.50
Fixed cost of goods sold (135,000)
Fixed marketing costs( 60,000)
OperatingIncome$ 30,000
The company has a special (one-time) order for 5,000 units to be purchased at a sales price of $11 per unit. Should they sell these 5,000 units for $11?
In addition, no marketing costs will be necessary for the 5,000 one-time-only special order.
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