Bramble Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $17, direct labour $11, and overhead $12 (75% variable). Bramble has no excess capacity to accept a special order for 39,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Bramble would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Bramble Co. the special order.
Bramble Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $17, direct labour $11, and overhead $12 (75% variable). Bramble has no excess capacity to accept a special order for 39,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Bramble would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Bramble Co. the special order.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bramble Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $17, direct labour $11, and overhead
$12 (75% variable). Bramble has no excess capacity to accept a special order for 39,400 units, at a discount of 25% from the regular
price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Bramble would realize by
accepting the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).)
Incremental income (loss) $
Bramble Co.
the special order.
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