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Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (17,400 units) Variable costs Direct materials Direct labor
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (17,400 units) Variable costs Direct materials Direct labor Overhead: Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Per Unit $ 12.00 Annual Total $ 208,800 1.50 26,100 4.00 69,600 1.00 17,400 5.50 95,700 1.00 17,400 1.40 24,360 $ 3.10 $ 53,940 A foreign company offers to buy 5,800 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 27,400 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $3,850 loss $5,800 profit 3737 A foreign company offers to buy 5,800 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 27,400 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $3,850 loss $5,800 profit $4,350 profit $9,650 loss $2,400 loss
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