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Category > Accounting Posted 18 Dec 2017 My Price 10.00

The forecasted income statement for 2009

hello

i can get the answer for this question please

Special Order
Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for 2009 is as follows:

Sales ($49 per unit) $4,900,000
Cost of good sold ($32 per unit) (3,200,000)
Gross profit 1,700,000
Selling expenses ($4 per unit) (400,000)
Net income $1,300,000

 

 

Additional Information
(1) Of the production costs and selling expenses, $600,000 and $100,000, respectively, are fixed. (2) Tobitzu TV received a special order from a hospital supply company offering to buy 12,000 wall mounts for $30. If it accepts the order, there will be no additional selling expenses, and there is currently sufficient excess capacity to fill the order. The company's sales manager argues for rejecting the order because "we are not in the business of paying $32 to make a product to sell for $30."

Calculate the net benefit (cost) of accepting the special order.

Answers

CourseLover
(12)
Status NEW Posted 18 Dec 2017 04:12 PM My Price 10.00

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