Blossom Company produced and sold 40,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: Sales price Variable manufacturing cost $70 $」」 10 55 $15 $45 Fixed manufacturing cost ($400,000 ÷ 40,000) Profit per unit The company received a proposal from a foreign company to buy 8,000 units of Blossom Company's product for $50 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Blossom Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. (a1) Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding

Blossom Company produced and sold 40,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: Sales price Variable manufacturing cost $70 $」」 10 55 $15 $45 Fixed manufacturing cost ($400,000 ÷ 40,000) Profit per unit The company received a proposal from a foreign company to buy 8,000 units of Blossom Company's product for $50 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Blossom Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. (a1) Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding

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 15E

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