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Crane Company produced and sold 52,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:
Crane Company produced and sold 52,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: Sales price Variable manufacturing cost Fixed manufacturing cost ($520,000 52,000) Profit per unit (a1) $65 10 $90 Reject Order 75 The company received a proposal from a foreign company to buy 9,200 units of Crane Company's product for $70 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Crane Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. $15 Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) CRANE COMPANY Incremental Analysis Proposal to sell 9,200 units at $70 Accept Order Net Income Increase (Decrease)
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