Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Per Unit $ 12.00 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 Annual Total $ 216,000 27,000 72,000 18,000 99,000 18,000 25, 200 $ 55,800 A foreign company offers to buy 6,000 units at $7.50 per unit. addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Lattimer Company had the following results of operations for the past year:
Contribution margin income statement
Sales (18,000 units)
Variable costs
Direct materials
Direct labor
Overhead
Contribution margin
Fixed costs
Fixed overhead
Fixed selling and administrative expenses
Income
Multiple Choice
O
$6,000 profit.
Per Unit
$ 12.00
$4,000 loss.
1.50
4.00
1.00
5.50
1.00
1.40
$ 3.10
A foreign company offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for
export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a:
Annual Total
$ 216,000
27,000
72,000
18,000
99,000
18,000
25, 200
$ 55,800
Transcribed Image Text:Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice O $6,000 profit. Per Unit $ 12.00 $4,000 loss. 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 A foreign company offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a: Annual Total $ 216,000 27,000 72,000 18,000 99,000 18,000 25, 200 $ 55,800
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