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Sandhill Company produced and sold 49,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:

Sandhill Company produced and sold 49,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:

Sales price $110
Variable manufacturing cost $85
Fixed manufacturing cost ($490,000 49,000) 10 95
Profit per unit $15

The company received a proposal from a foreign company to buy 12,800 units of Sandhill Company's product for $90 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 Sandhill 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 0 for the amounts.)

SANDHILL COMPANY Incremental Analysis Proposal to sell 12,800 units at $90

Reject Order

Accept Order

Net Income Increase (Decrease)

select an item SalesNet IncomeFixed CostsCostsRevenuesNet Loss

$enter a dollar amount $enter a dollar amount $enter a dollar amount

select an item CostsSalesFixed CostsNet IncomeRevenuesNet Loss

enter a dollar amount enter a dollar amount enter a dollar amount

select a closing name CostsSalesNet IncomeRevenuesFixed CostsNet Loss

$enter a total amount $enter a total amount $enter a total amount

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