Question
WilsonSunlandis a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a
WilsonSunlandis a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of500,000windows. Current production is budgeted at450,000windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows:
Direct materials
$40.00
Direct labor
19.00
Manufacturing overhead
16.00
Selling and administrative
14.00
Total unit cost
$89.00
The company's budget includes $5,400,000in fixed overhead and $3,150,000in fixed selling and administrative expenses. The windows sell for $150.00each. A2% distributor's commission is included in the selling and administrative expenses.
Culver, Finland's second largest homebuilder, has approached Wilson with an offer to buy75,000windows during the coming year. Given the size of the order,Culverhas requested a40% volume discount on Wilson's normal selling price. Calculate the contribution from special order.(If net contribution is negative, enter amount with a negative sign, e.g. -5,285 or parentheses, e.g. (5,285). Round answer to 0 decimal places, e.g. 8,971.)
Net contribution from special order
$enter the net contribution from special order in dollars rounded to 0 decimal places
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