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TB MC Qu. 10-73 (Algo) Lattimer Company had the following results... Lattimer Company had the following results of operations for the past year: Per Unit
TB MC Qu. 10-73 (Algo) Lattimer Company had the following results... Lattimer Company had the following results of operations for the past year: Per Unit $ 12.00 Annual Total $ 183,600 Contribution margin income statement Sales (15,300 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income 1.50 4.00 1.00 5.50 22,950 61,200 15,300 84,150 1.00 1.40 $ 3.10 15,300 21,420 $ 47,430 A foreign company offers to buy 5,100 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 25,300 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $2,050 loss. $8,425 loss. O $3,825 profit. $3,325 loss. O $5,100 profit. O
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