> Moving to another question will save this response. uestion 8 2 points Save An

Question

> Moving to another question will save this response. uestion 8 2 points Save An Able Company's unit manufacturing cost is. Fixed Costs 25 A special order for 2,000 units has been received from a foreign company The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $(46,000) $6,000 $(40,000) $10,000. Question 8 of 10 47 PM 4o)11/18/2017

Explanation / Answer

Answer b - $6,000 Statement of Incremental Profit If Special Order is Accepted Incremental Revenue Sales Revenue - 2,000 Units X $55          110,000 Incremental Costs Variable Costs - 2,000 Units X $50          100,000 Additional Freight Cost - 2,000 Units X $2              4,000          104,000 Net Incremental Profit / Tax              6,000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.