TB MC Qu. 23-73 (Algo) Lattimer Company had the following results...

Lattimer Company had the following results of operations for the past year:

Contribution margin income statement	Per Unit	Annual Total
Sales (18,600 units)	$ 12.00	$ 223,200
Variable costs
Direct materials	1.50	27,900
Direct labor	4.00	74,400
Overhead	1.00	18,600
Contribution margin	5.50	102,300
Fixed costs
Fixed overhead	1.00	18,600
Fixed selling and administrative expenses	1.40	26,040
Income	$ 3.10	$ 57,660

A foreign company offers to buy 6,200 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimers annual production capacity is 28,600 units. If Lattimer accepts this additional business, the special order will yield a:

Multiple Choice

• $2,600 loss.

• $10,350 loss.

• $4,650 profit.

• $4,150 loss.

• $6,200 profit.