Question
Sales (7,000 safety checks) $560,000 Production costs (7,010 safety checks) Direct labor 392,560 Shop overhead Variable 89,728 Fixed 56,080 Operating expenses Variable 16,824 Fixed 12,800
Sales (7,000 safety checks) $560,000
Production costs (7,010 safety checks)
Direct labor 392,560
Shop overhead
Variable 89,728
Fixed 56,080
Operating expenses
Variable 16,824
Fixed 12,800
c. Assume that you must decide quickly whether to accept a special one-time order for 20 safety checks on local police cars for $64 per safety check. Which income statement presents the most relevant data? Answer Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number.
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