Cullumber Company produced and sold 64,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:

Sales price				$110
Variable manufacturing cost		$85
Fixed manufacturing cost ($640,000 64,000)		10		95
Profit per unit				$15

The company received a proposal from a foreign company to buy 12,000 units of Cullumber Company's product for $90 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 Cullumber Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order.

(a1)

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 0 for the amounts.)

CULLUMBER COMPANY Incremental Analysis Proposal to sell 12,000 units at $90
		Reject Order		Accept Order		Net Income Increase (Decrease)
select an item Net LossNet IncomeSalesCostsFixed CostsRevenues		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item SalesNet IncomeCostsNet LossRevenuesFixed Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name SalesRevenuesNet IncomeCostsNet LossFixed Costs		$enter a total amount		$enter a total amount		$enter a total amount

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