Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lamont Industries has an annual plant capacily of 72.000 units; current production is 52.000 unis per year. At the current production volume, the variable cost

image text in transcribed
Lamont Industries has an annual plant capacily of 72.000 units; current production is 52.000 unis per year. At the current production volume, the variable cost per unit is $26.00 and the fixed cost per unt is $4.70. The nomal selling price of Lamont's product is $42.00 per unit. Lamont has been asked by Bramwall Company to fil a special order for 15.000 units of the product at a special sales price of $23.00 per unit. Bramwal is located in a foreign country where Lamont does not currently operate. Bramwall will market the units in its country under its own brand name, so the speciat order is not expected to have any effect on Lamoers regular sales. Read the cequirements. Requirement 1. How would accepting the special order impact Lamonts operating income? Should Lamont accept the special order? The special order wil Lamonts operating income by $ Thus, Lamont accept the speosil sames order. Requirement 2 How would your analysis change if the special order sales pnce were to be $41,00 per unt and tamont would have to pay an attomey a foe of 510,000 to make sure it is complying with oxport liws and regulasons relating to the special order? Uncer these new assumptions, the special order will Lamont's operating income bys Thus, Lament accept the speciai saves order. Requirements 1. How would accepting the special order impact Lamonts operating income? Should Lamont accept the special order? 2. How would your analysis change if the spocial order sales price were to be S41,00 per unit and Lamont would have to poy an attomey a fee 01$19,000 to make suee ti is complying with export larss and regulatons relating to the special order

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

Accounting And Finance

Authors: Michael J. Jones

1st Edition

1118932072, 9781118932070

More Books

Students also viewed these Accounting questions

Question

Find the derivative of y= cos cos (x + 2x)

Answered: 1 week ago