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Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $12.45) Variable manufacturing costs Fixed manufacturing costs $
Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $12.45) Variable manufacturing costs Fixed manufacturing costs $ 186,750 Selling and administrative expenses (all fixed) Operating income $104,250 27,750 42,750 (174,750) $ 12,000 A foreign company offers to buy 5,900 units at $8.40 per unit. In addition to existing costs, selling these units would add a $0.34 selling cost for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $6,549 profit. $10,266 loss. $8,555 profit. $4,366 loss. $2,360 loss.
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