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Company #5 produced and sold 50,000 units of product and is operating at 80% of plant capacity. Unit information about its product is as follows:
Company #5 produced and sold 50,000 units of product and is operating at 80% of plant capacity. Unit information about its product is as follows:
Sales Price | $68 |
Variable manufacturing cost | $42 |
Fixed manufacturing cost ($600,000 50,000) | 12 | 54 | |
Profit per unit | $14 |
The company received a proposal from a foreign company to buy 10,000 units for $49 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. Instructions Prepare a schedule reflecting an incremental analysis of this proposal. Use the format from the textbook.
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