Question
Production and sales of its product were on budget at 3,150 units to date, with the following income statement reflecting its income for the first
Production and sales of its product were on budget at 3,150 units to date, with the following income statement reflecting its income for the first half of the year.
| Sales | $248,850 | |
| Variable costs: | ||
| Dm | $47,250 | |
| DL | $34,650 | |
| Variable MOH | $9,450 | |
| Variable Selling | $6,300 | $97,650 |
| Contribution Margin | 151,200 | |
| Fixed Costs | ||
| MOH Fixed | $35,000 | |
| Fixed Selling | $106,000 | $141,000 |
| Operating Income | $10,200 |
A customer requests 195 units in the special order and offers $49 per unit. Since the customer came directly to the company, no variable selling cost will be incurred. How much better or worse off will Sheridan Industries be if it accepts this special order, assuming it has enough idle capacity for the order?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Information Technology And Business Solutions
Authors: Anita Hollander, Eric Denna, J. Owen Cherrington
2nd Edition
0256217890, 978-0256217896
