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Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (15,600 units) Variable costs Direct materials Direct labor
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (15,600 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Per Unit $12.00 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 Annual Total $ 187,200 23,400 62,400 15,600 85,80 15,600 21,840 $ 48,360 A foreign company offers to buy 5,200 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 25,600 units. If Lattimer accepts this additional business, the special order will yield a:
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