MUST SHOW ALL WORK

ACCEPTING ADDITIONAL BUSINESS The company is deciding in it should act asalto a customer for $325 per unit instead of their a $350 le price. The additional sale would be for 40 units The company has the capacity to futhill the sale. If accepted. Normal sales and production quantities total 1.000 units and the sales and costs are shown below. There would be the following costs to consider if the sale was accepted: Costs of Additional Sale to consider, OM would be $5 per unit higher due to a special requirement needed DL would be 25% more due to additional hours needed. All other Variable costs would remain the same per unit. There would be a flat amount of $1,040 in administrative costs related to this sale and $1.400 in Selling expenses. Income Statement for 1000 Units (sold and produced) ANNUAL PRODUCTION ADDITIONAL SALE TOTAL 40 UNITS 1000 units SALES OM OL FOH('see note) SELLING ADMIN TOTAL COSTS NET INCOME $ 350,000 $ 80,000 $ 100,000 320,000 $ 80,000 $ 40,000 $ 320,000 $ 30,000 $? S? **NOTE on FOH: 20% of FOH IS VARIABLE, 80% is Fixed *REQUIRED 11 Analyze the cost information to determine the Net Income cross of accepting the new business. Also determine the Total Net Income or loss of the company. Show in a 3 column format (similar to above on your PDF (20 points) 2). Should the additional sale be accepted? Why or why not? i4 points) 3) Calculate the Profit Margin for EACH the normal production of 500 units, the additional sale, AND the new total for the company? (6 points) I will review your PDF for parts 1-3 above, for preliminary Canvas grading you may enter the Incremental Net Income of accepting the additional sale