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Data for one of the Shepard Company products is as follows: Item Maximum capacity Current sales level Selling price Variable production costs Variable selling costs
Data for one of the Shepard Company products is as follows: Item Maximum capacity Current sales level Selling price Variable production costs Variable selling costs Fixed costs Amount 129,500 units 50,250 units $51.25 per unit 26.00 per unit 8.75 per unit 434,500 Shepard has been offered a one-time special order for 39,500 units at a price of $38.00. If the special order is accepted, 57% of the variable selling costs will be incurred for each unit of the special order. What is the incremental income to the Shepard Company on the special order?
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