Bridgeport Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Bridgeport has no excess capacity to accept a special order for 38,800 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 Bridgeport 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) Bridgeport Co. LA $ ✓the special order.
Bridgeport Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Bridgeport has no excess capacity to accept a special order for 38,800 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 Bridgeport 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) Bridgeport Co. LA $ ✓the special order.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bridgeport Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15,
direct labour $10, and overhead $12 (75% variable). Bridgeport has no excess capacity to accept a special
order for 38,800 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 Bridgeport 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)
Bridgeport Co.
LA
$
✓ the special order.
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