Atlas Manufacturing received a special order from a foreign distributor for 8,000 units of their product at $24.75 per unit. This order won't affect Atlas's regular production or domestic sales prices. The following data is available: • Domestic unit sales price: $29.50 ⚫ Unit manufacturing costs: 。 Variable: $16.25 。 Fixed: $4.75 What is the amount of income or loss from acceptance of this special order? a. $38,000 loss b. $68,000 income c. $106,000 loss d. $106,000 income

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Atlas Manufacturing received a special order from a foreign distributor for 8,000
units of their product at $24.75 per unit. This order won't affect Atlas's regular
production or domestic sales prices. The following data is available:
•
Domestic unit sales price: $29.50
⚫ Unit manufacturing costs:
。 Variable: $16.25
。 Fixed: $4.75
What is the amount of income or loss from acceptance of this special order?
a. $38,000 loss
b. $68,000 income
c. $106,000 loss
d. $106,000 income
Transcribed Image Text:Atlas Manufacturing received a special order from a foreign distributor for 8,000 units of their product at $24.75 per unit. This order won't affect Atlas's regular production or domestic sales prices. The following data is available: • Domestic unit sales price: $29.50 ⚫ Unit manufacturing costs: 。 Variable: $16.25 。 Fixed: $4.75 What is the amount of income or loss from acceptance of this special order? a. $38,000 loss b. $68,000 income c. $106,000 loss d. $106,000 income
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