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undefined Sheridan Company is considering two alternatives. Alternative A will have sales of $151,200 and costs of $100,000. Alternative B will have sales of $180,400
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Sheridan Company is considering two alternatives. Alternative A will have sales of $151,200 and costs of $100,000. Alternative B will have sales of $180,400 and costs of $130,300. Compare alternative A with alternative B showing incremental revenues, costs, and net income. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Alternative A Alternative B Net Income Increase (Decrease) $ $ Revenues Costs $ $ $ Net income is better than Sheridan Co. sells product P-14 at a price of $46 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Sheridan Co. has sufficient capacity to accept a special order for 35,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Sheridan Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Sheridan Co. the special orderStep by Step Solution
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