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Pharoah Company produced and sold 56,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:
Pharoah Company produced and sold 56,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: Sales price $80 Variable manufacturing cost $55 Fixed manufacturing cost ($560,000+56,000) Profit per unit 10 65 $15 The company received a proposal from a foreign company to buy 8,800 units of Pharoah Company's product for $60 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Pharoah Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) PHAROAH COMPANY Incremental Analysis Proposal to sell 8,800 units at $60 Save for Later Reject Order $ $ Accept Order Net Income Increase (Decrease) $ Attempts: 0 of 1 used Submit
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