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Texas Controls Inc. began operations in 201 to manufacture a single product. There are no ending work-in-process inventories. Relevant data for the year follow: Required:

image text in transcribed Texas Controls Inc. began operations in 201 to manufacture a single product. There are no ending work-in-process inventories. Relevant data for the year follow: Required: 1. Prepare an income statement for 201 using direct costing. 2a. Assume that the company has an opportunity to sell 900 units of the product in a foreign country for $71 per unit. No fixed or variable selling and administrative expenses would be incurred in connection with these units except shipping costs of $18 per unit and miscellaneous administrative expenses of $1 per unit. The company has idle capacity, and the order would not affect present markets. Compute marginal income or loss on order. 2b. Would it be profitable for the company to accept the order? Analyze: What percentage of the foreign sales order would be realized as marginal income? Complete this question by entering your answers in the tabs below. What percentage of the foreign sales order would be realized as marginal income? (Round your percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%.) Texas Controls Inc. began operations in 201 to manufacture a single product. There are no ending work-in-process inventories. Relevant data for the year follow: Required: 1. Prepare an income statement for 201 using direct costing. 2a. Assume that the company has an opportunity to sell 900 units of the product in a foreign country for $71 per unit. No fixed or variable selling and administrative expenses would be incurred in connection with these units except shipping costs of $18 per unit and miscellaneous administrative expenses of $1 per unit. The company has idle capacity, and the order would not affect present markets. Compute marginal income or loss on order. 2b. Would it be profitable for the company to accept the order? Analyze: What percentage of the foreign sales order would be realized as marginal income? Complete this question by entering your answers in the tabs below. What percentage of the foreign sales order would be realized as marginal income? (Round your percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%.)

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