A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:
Direct materials $ 4
Direct labor 10
Variable overhead 8
Fixed overhead 6
A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is
a) $(6,000).
b) $(2,000).
c) $6,000.
d) $2,000.
d) $2,000
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Which is a shareholders' equity account on the balance sheet?
A. Accumulated depreciation. B. Paid-in capital. C. Dividends payable. D. Marketable securities.
S & C Inc.'s income tax payable is $270,000 and its tax rate is 40%. Assuming no book-tax income difference, what is S & C's net income?
A) $450,000 B) $108,000 C) $378,000 D) $675,000