Travers Company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units (the total capacity of their factory). Travers Company is presently manufacturing 7000 units in their factory. Direct Materials $11 Direct Labor $9 Variable Overhead $9 Fixed Overhead $6 Poppins Company wants to purchase 2,000 units at a special unit price of $34. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $5,853 in order to stamp the company's logo on the product. What is the amount of the incremental income (loss) from accepting the order? (your answer should be the total loss for ALL 2000 units incremental profit it) just one If your answer is a loss, puta minus sign in front of your answer. Input your answer without dollar signs or commas. DON'T ROUND ANY NUMBER EXCEPT YOUR FINAL ANSWER.
Travers Company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units (the total capacity of their factory). Travers Company is presently manufacturing 7000 units in their factory. Direct Materials $11 Direct Labor $9 Variable Overhead $9 Fixed Overhead $6 Poppins Company wants to purchase 2,000 units at a special unit price of $34. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $5,853 in order to stamp the company's logo on the product. What is the amount of the incremental income (loss) from accepting the order? (your answer should be the total loss for ALL 2000 units incremental profit it) just one If your answer is a loss, puta minus sign in front of your answer. Input your answer without dollar signs or commas. DON'T ROUND ANY NUMBER EXCEPT YOUR FINAL ANSWER.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Travers Company is contemplating the acceptance of a special order has the following unit
cost behavior, based on 10,000 units (the total capacity of their factory). Travers Company is
presently manufacturing 7000 units in their factory.
Direct Materials
$11
Direct Labor
$9
Variable Overhead
$9
Fixed Overhead
$6
Poppins Company wants to purchase 2,000 units at a special unit price of $34. The normal
price per unit is $40. In addition, a special stamping machine will have to be purchased for
$5,853 in order to stamp the company's logo on the product. What is the amount of the
incremental income (loss) from accepting the order? (your answer should be the total
loss for ALL 2000 units
incremental profit
it)
just one
If your answer is a loss, puta minus sign in front of your answer. Input your answer without
dollar signs or commas. DON'T ROUND ANY NUMBER EXCEPT YOUR FINAL ANSWER.
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