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Lattimer Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (19,500 units) $ 12.00
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (19,500 units) $ 12.00 $ 234,000 Variable costs Direct materials 1.50 29,250 Direct labor 4.00 78,000 Overhead 1.00 19,500 Contribution margin 5.50 107,250 Fixed costs Fixed overhead 1.00 19,500 Fixed selling and administrative expenses 1.40 27,300 Income $ 3.10 $ 60,450 A foreign company offers to buy 6,500 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimers annual production capacity is 29,500 units. If Lattimer accepts this additional business, the special order will yield a
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