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Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $12.50) Variable manufacturing costs Fixed manufacturing costs Selling and
Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $12.50) Variable manufacturing costs Fixed manufacturing costs Selling and administrative expenses (all fixed) Operating income $ 187,500 $105,000 28,500 43,500 (177,000) $ 10,500 A foreign company whose sales will not affect Lattimer's market offers to buy 6,000 units at $8.50 per unit. In addition to existing costs, selling these units would add a $0.35 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 $10,500 l. $4,500 l. | ooooo $6,900 profit $2400 l. $9,000 profit. Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 2.920 units in January, 2,720 units in February and 3.340 units in March. Each unit requires 0.7 hours of direct labor. The direct labor rate is $11 per hour. Compute the budgeted direct labor cost for the first quarter budget. Multiple Choice o $69,146. o $62,832 o $89,760. o $62,860. o $98,780
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