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Exercise 181 Felter Company produced and sold 50,000 units of product and is operating at 70% of plant capacity. Unit information about its product is
Exercise 181 Felter Company produced and sold 50,000 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 ($500,000 50,000) 10 55 Profit per unit $45 $15 The company received a proposal from a foreign company to buy 10,000 units of Felter Company's product for $50 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 Felter Company is reluctant to accept the proposal because he is concemed that the company will lose money on the special order 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.) FELTER COMPANY l Analysis Proposal to sell 10,000 units at $50 Net Income Increase (Decrease) Reject Order Accept Order Indicate the effect the acceptance of this order might have on the company's income. Felter Company would its income by $ in accepting the special order Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 15 used
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