Question
Bridgeport Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and
Bridgeport Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable), Bridgeport has no excess capacity to accept a special order for 38,800 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Bridgeport would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, eg. (15,000)) Incremental income (loss) Bridgeport Co. the special order.
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
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