Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ecosolutions income statement is presented below: Contribution Margin Income Statement Per Unit Total Sales $30 $24,000,000 Variable Costs Direct Materials 4 3,200,000 Direct Labor 5

Ecosolutions income statement is presented below: Contribution Margin Income Statement Per Unit Total Sales $30 $24,000,000 Variable Costs Direct Materials 4 3,200,000 Direct Labor 5 4,000,000 Variable Selling Exp. 3 2,400,000 Variable Overhead 4 3,200,000 Total Variable Costs $16 $12,800,000 Contribution Margin $14 $11,200,000 Fixed Costs Selling Costs 1,500,000 Administrative Costs 2,000,000 Total Fixed Costs $3,500,000 Before Tax Income $7,700,000 A special order to purchase 10,000 units @ 21.50 from a good customer is received. The company has the capacity to fulfill the order. If the order is accepted variable selling expenses will be $.50 per unit (there will be no commissions in the order), but a fixed administrative cost of $2,000 will be added to the new order. If the order is accepted what will be the incremental before tax income.

ROUND YOUR ANSWER TO ZERO DECIMAL PLACES DON'T USE COMMA SEPARATORS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bio Technology Audit In Hungary Guidelines Implementation Results

Authors: Ulrike Bross, Annamaria Inzelt, Thomas Reiß

1st Edition

3790810924, 978-3790810929

More Books

Students also viewed these Accounting questions

Question

What is the learning and growth perspective?

Answered: 1 week ago