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Sunland Company produced and sold 47,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:
Sunland Company produced and sold 47,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: $90 $65 Sales price Variable manufacturing cost Fixed manufacturing cost ($470,000 + 47.000) Profit per unit 10 75 $15 The company received a proposal from a foreign company to buy 11,000 units of Sunland Company's product for $70 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 Sunland 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 sig preceding the number e.8. -45 or parentheses e 8. (45). Do not leave any field blank. Enter o for the amounts.) SUNLAND COMPANY Incremental Analysis Proposal to sell 11,000 units at $70 Net Income Increase (Decrease) Reject Order Accept Order $ $ Net Loss Costs Sales Net Income Fixed Costs Revenues $
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