Question
Ivanhoe Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $11, and overhead
Ivanhoe Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $11, and overhead $12 ( 75% variable). Ivanhoe has no excess capacity to accept a special order for 39,900units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income(loss) that Ivanhoe would realize by accepting the special order. ( enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000). )
Incremental income (loss) $------------------------------
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