Bridgeport Manufacturing has an annual capacity of 83,800 units per year Currently, the company is making and selling 77,300 units a year. The normal sales price is $103 per unit, variable costs are $73 per unit, and total fixed expenses are $2,000,000An out-of- state distributor has offered to buy 10,300 units at $88 per unit. Bridgeport's cost structure should not change as a result of this special order . By how much will Bridgeport's income change if the company accepts this order? Bridgeport's operating income will increase by $10,500 if it accepts the special order
Bridgeport Manufacturing has an annual capacity of 83,800 units per year Currently, the company is making and selling 77,300 units a year. The normal sales price is $103 per unit, variable costs are $73 per unit, and total fixed expenses are $2,000,000An out-of- state distributor has offered to buy 10,300 units at $88 per unit. Bridgeport's cost structure should not change as a result of this special order . By how much will Bridgeport's income change if the company accepts this order? Bridgeport's operating income will increase by $10,500 if it accepts the special order
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bridgeport Manufacturing has an annual capacity of 83,800 units per year Currently, the company is making and selling 77,300 units a year. The normal sales price is $103 per unit, variable costs are $73 per unit, and total fixed expenses are $2,000,000An out-of- state distributor has offered to buy 10,300 units at $88 per unit. Bridgeport's cost structure should not change as a result of this special order . By how much will Bridgeport's income change if the company accepts this order? Bridgeport's operating income will increase by $10,500 if it accepts the special order
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