Question
Company sells suits to customers.Its operating at 90% capacity and has the following results Total Per Unit Sales $4,500,000 $50.00 Cost of sales $3,150,000 $35.00
Company sells suits to customers.Its operating at 90% capacity and has the following results
Total Per Unit
Sales $4,500,000 $50.00
Cost of sales $3,150,000 $35.00
Selling and Administrative Expenses $ 360,000 $4.00
Net Income $990,000 $11.00
Fixed costs for the period were; Cost of Goods sold $900,000; Selling and Administrative Expenses $162,000
The Co. has received a request to supply 11,000 suits to a customer at a price of $30.00 each
Accepting the order would increase the variable selling and administrative expenses by 0.50 per suit ,with no increase in fixed cost
Create an incremental analysis for this Special Order
If the company wanted to ensure a net income of $5.00 per suit ,what is the minimum selling price for each suit
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