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Lakeside Incorporated produces a product that currently sells for $ 7 0 per unit. Current production costs per unit include direct materials, $ 1 8

Lakeside Incorporated produces a product that currently sells for $70 per unit. Current production costs per unit include direct materials, $18.50; direct labor, $20.50; variable overhead, $13.50; and fixed overhead, $13.50. Lakeside has received an offer from a nonprofit organization to buy 9,700 units at $53.50 per unit. Lakeside currently has unused production capacity.
Required:
Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.
Should Lakeside accept this special sales order?Lakeside Incorporated produces a product that currently sells for $70 per unit. Current production costs per unit include direct
materials, $18.50; direct labor, $20.50; variable overhead, $13.50; and fixed overhead, $13.50. Lakeside has received an offer from a
nonprofit organization to buy 9,700 units at $53.50 per unit. Lakeside currently has unused production capacity.
Required:
a. Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.
b. Should Lakeside accept this special sales order?
Complete this question by entering your answers in the tabs below.
Required B
Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.
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