Question
Wright Corporation's contribution format income statement for last month appears below. Sales $ 75,000 Variable expenses 33,000 Contribution margin 42,000 Fixed expenses 15,000 Net operating
Wright Corporation's contribution format income statement for last month appears below. |
Sales | $ 75,000 |
Variable expenses | 33,000 |
Contribution margin | 42,000 |
Fixed expenses | 15,000 |
Net operating income | $ 27,000 |
There were no beginning or ending inventories. The company produced and sold 3,000 units during the month. |
The company has an opportunity to secure a special order of 850 units if it is willing to drop the selling price on these units to $23. Costs of securing the special order would be $1,100. The special order would not affect the company's regular sales. If the special order is accepted, the company's overall net operating income will: (Do not round intermediate calculations.)
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