Business, 23.11.2019 01:31 ajayfurlow

Lattimer company had the following results of operations for the past year: sales (15,000 units at $12.25) $183,750 variable manufacturing costs $101,250 fixed manufacturing costs 24,750 selling and administrative expenses (all fixed) 39,750 (165,750) operating income $18,000 a foreign company whose sales will not affect lattimer's market offers to buy 5,500 units at $8.00 per unit. in addition to existing costs, selling these units would add a $0.30 selling cost for export fees. if lattimer accepts this additional business, the special order will yield a:
a. $3,850 loss.
b. $6,875 profit.
c. $2,200 loss.
d. $5,225 profit.
e. $9,350 loss.

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