Question
Lattimer Company had the following results of operations for the past year Sales (15,000 units at $11.55) $ 173,250 Variable manufacturing costs $90,750 Fixed
Lattimer Company had the following results of operations for the past year Sales (15,000 units at $11.55) $ 173,250 Variable manufacturing costs $90,750 Fixed manufacturing costa 14,250 Selling and administrative expenses (all fixed) Operating income 29,250 (134,250) $ 39,000 A foreign company offers to buy 4,100 units at $6.60 per unit. In addition to existing costs, selling these units would add a $0.16 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 $6,396 loss. $2,296 loss $2,255 profit B
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