Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay fo shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumbe mas sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parenthese 8. (45).) Revenues Costs et income $ $ Reject Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000

Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay fo shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumbe mas sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parenthese 8. (45).) Revenues Costs et income $ $ Reject Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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Transcribed Image Text:Current Attempt in Progress Your answer is partially correct. Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs $ Net income $ Reject $ $ Should Cullumber Company accept the special order? Cullumber company should accept V the special order. Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000

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