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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 (21,000 units) $ 12.00

Lattimer Company had the following results of operations for the past year:

Contribution margin income statementPer UnitAnnual Total
Sales (21,000 units)$ 12.00$ 252,000
Variable costs
Direct materials1.5031,500
Direct labor4.0084,000
Overhead1.0021,000
Contribution margin5.50115,500
Fixed costs
Fixed overhead1.0021,000
Fixed selling and administrative expenses1.4029,400
Income$ 3.10$ 65,100


A foreign company offers to buy 7,000 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 31,000 units. If Lattimer accepts this additional business, how much the special order will yield?

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