Question
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:
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
$70
$45
Fixed manufacturing cost ($500,000-50,000) 10
55
Profit per unit
$15
The company received a proponat from a foreign company to buy 10,000 units of Feiter 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 concerned 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 eg -45 or parentheses eg. (45). Do not leave any held blank. Enter O for the amounts.)
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