Question
Offer provided by the buyer to buy the screen for: 97 Requested amount from buyer: 17,000 Direct material: 38 Direct labour: 43 Variable manufacturing overhead:
Offer provided by the buyer to buy the screen for: 97
Requested amount from buyer: 17,000
Direct material: 38
Direct labour: 43
Variable manufacturing overhead: 7
Special modification to equipment to meet the new market standards: 1
Additional equipment needed: 3,000
Price of selling the screen in the local market: 145.5
What is the incremental cost?
What is the total incremental operating income?
Should you accept or reject the project?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
