Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preced the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) $ CULLUMBER COMPANY Incremental Analysis Proposal to sell 8,000 units at $80 Reject Order $ $ Accept Order $ $ Net Income Increase (Decrease) SU
Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preced the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) $ CULLUMBER COMPANY Incremental Analysis Proposal to sell 8,000 units at $80 Reject Order $ $ Accept Order $ $ Net Income Increase (Decrease) SU
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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![Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding
the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.)
$
$
CULLUMBER COMPANY
Incremental Analysis
Proposal to sell 8,000 units at $80
Reject Order
$
$
Accept Order
$
$
Net Income
Increase (Decrease)
SUPPO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f10e597-6cab-496b-96c5-11185f37c7e8%2F0a5d0cdc-6442-4b82-ac30-fcdb149efdb3%2Fd0uyv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding
the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.)
$
$
CULLUMBER COMPANY
Incremental Analysis
Proposal to sell 8,000 units at $80
Reject Order
$
$
Accept Order
$
$
Net Income
Increase (Decrease)
SUPPO
![Cullumber Company produced and sold 53,000 units of product and is operating at 70% of plant capacity. Unit information about its
product is as follows:
Sales price
Variable manufacturing cost
Fixed manufacturing cost ($530,000 ÷ 53,000)
Profit per unit
$75
10
$100
85
$15
The company received a proposal from a foreign company to buy 8,000 units of Cullumber Company's product for $80 per unit. This is
a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Cullumber
Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f10e597-6cab-496b-96c5-11185f37c7e8%2F0a5d0cdc-6442-4b82-ac30-fcdb149efdb3%2Ftvmutbh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cullumber Company produced and sold 53,000 units of product and is operating at 70% of plant capacity. Unit information about its
product is as follows:
Sales price
Variable manufacturing cost
Fixed manufacturing cost ($530,000 ÷ 53,000)
Profit per unit
$75
10
$100
85
$15
The company received a proposal from a foreign company to buy 8,000 units of Cullumber Company's product for $80 per unit. This is
a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Cullumber
Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order.
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