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Incremental Analysis Drill #1 Disney Company manufactures a product with a unit variable cost of $23 and a unit sales price of $60. Fixed manufacturing costs were $90,000 when 10,000 units were produced and sold, equating to $9 per unit. The company has a one-time opportunity to sell an additional 3,00 units at $35 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?

Incremental Analysis Drill #1 Disney Company manufactures a product with a unit variable cost of $23 and a unit sales price of $60. Fixed manufacturing costs were $90,000 when 10,000 units were produced and sold, equating to $9 per unit. The company has a one-time opportunity to sell an additional 3,00 units at $35 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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All-day long. m Incremental Analysis Drill #1 Disney Company manufactures a product with a unit variable cost of $23 and a unit sales price of $60. Fixed manufacturing costs were $90,000 when 10,000 units were produced and sold, equating to $9 per unit. The company has a one-time opportunity to sell an additional 3,000 units at $35 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?
Transcribed Image Text:All-day long. m Incremental Analysis Drill #1 Disney Company manufactures a product with a unit variable cost of $23 and a unit sales price of $60. Fixed manufacturing costs were $90,000 when 10,000 units were produced and sold, equating to $9 per unit. The company has a one-time opportunity to sell an additional 3,000 units at $35 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?
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