Question
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,300 units) Variable costs Direct materials Direct
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,300 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 $ 219,600 1.50 27,450 4.00 73,200 1.00 18,300 5.50 100,650 1.00 18,300 1.40 $ 3.10 25,620 $ 56,730 A foreign company offers to buy 6,100 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 28,300 units. If Lattimer accepts this additional business, the special order will yield a:
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