Question

Husky Sports manufactures footballs. The forecasted income statement for the year before any special orders is as follows:


Fixed costs included in the preceding forecasted income statement are $1,200,000 in manufacturing cost of goods sold and $100,000 in selling expenses. Husky Sports received a special order for 50,000 footballs at $7.50 each. Assume that Husky Sports has sufficient capacity to manufacture 50,000 more footballs.

Required
Calculate the relevant unit cost that Husky Sports should consider in evaluating this specialorder.


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  • CreatedMarch 11, 2015
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