Sweet Acacia Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and overhead $12 (75% variable). Sweet Acacia has no excess capacity to accept a special order for 36,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Sweet Acacia would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
Sweet Acacia Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and overhead $12 (75% variable). Sweet Acacia has no excess capacity to accept a special order for 36,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Sweet Acacia would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sweet Acacia Co. sells product P-14 at a
price of $48 a unit. The per-unit cost data are
direct materials $15, direct labour $12, and
overhead $12 (75% variable). Sweet Acacia
has no excess capacity to accept a special
order for 36,400 units, at a discount of 25%
from the regular price. Selling costs
associated with this order would be $3 per
unit. Indicate the net income (loss) that
Sweet Acacia would realize by accepting the
special order. (Enter loss with a negative
sign preceding the number, e.g. -15,000
or parenthesis, e.g. (15,000).)
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