Apex Manufacturing received a special order from an overseas distributor for 8,000 units of product at $15.25 per unit. The acceptance of the order will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price: $18 Unit manufacturing costs: ⚫ Variable: $9 ⚫ Fixed: $2 What is the amount of income or loss from acceptance of the special order? a. $50,000 income b. $50,000 loss c. $34,000 loss d. $34,000 income

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 16E
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Apex Manufacturing received a special order from an overseas distributor
for 8,000 units of product at $15.25 per unit. The acceptance of the order will
not affect normal production or domestic sales prices. The following data is
available:
Domestic unit sales price: $18 Unit manufacturing costs:
⚫
Variable: $9
⚫ Fixed: $2
What is the amount of income or loss from acceptance of the special order?
a. $50,000 income
b. $50,000 loss
c. $34,000 loss
d. $34,000 income
Transcribed Image Text:Apex Manufacturing received a special order from an overseas distributor for 8,000 units of product at $15.25 per unit. The acceptance of the order will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price: $18 Unit manufacturing costs: ⚫ Variable: $9 ⚫ Fixed: $2 What is the amount of income or loss from acceptance of the special order? a. $50,000 income b. $50,000 loss c. $34,000 loss d. $34,000 income
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