Ecosolutions income statement is presented below: Sales Contribution Margin Income Statement Per Unit Total $30 $24,000,000...

  

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Ecosolutions income statement is presented below: Sales Contribution Margin Income Statement Per Unit Total $30 $24,000,000 Variable Costs Direct Materials Direct Labor 4 3,200,000 5 4,000,000 Variable Selling Exp. 3 2,400,000 Variable Overhead Total Variable Costs 4 3,200,000 $16 $12,800,000 Contribution Margin Fixed Costs Selling Costs Administrative Costs Total Fixed Costs Before Tax Income $14 $11,200,000 1,500,000 2,000,000 $3,500,000 $7,700,000 A special order to purchase 10,000 units @ 22 from a good customer is received. The company has the capacity to fulfill the order. If the order is accepted variable selling expenses will be $.60 per unit (there will be no commissions in the order), but a fixed administrative cost of $2,500 will be added to the new order. If the order is accepted what will be the incremental before tax income. ROUND YOUR ANSWER TO ZERO DECIMAL PLACES DON'T USE COMMA SEPARATORS Ecosolutions income statement is presented below: Sales Contribution Margin Income Statement Per Unit Total $30 $24,000,000 Variable Costs Direct Materials Direct Labor 4 3,200,000 5 4,000,000 Variable Selling Exp. 3 2,400,000 Variable Overhead Total Variable Costs 4 3,200,000 $16 $12,800,000 Contribution Margin Fixed Costs Selling Costs Administrative Costs Total Fixed Costs Before Tax Income $14 $11,200,000 1,500,000 2,000,000 $3,500,000 $7,700,000 A special order to purchase 10,000 units @ 22 from a good customer is received. The company has the capacity to fulfill the order. If the order is accepted variable selling expenses will be $.60 per unit (there will be no commissions in the order), but a fixed administrative cost of $2,500 will be added to the new order. If the order is accepted what will be the incremental before tax income. ROUND YOUR ANSWER TO ZERO DECIMAL PLACES DON'T USE COMMA SEPARATORS

Answer rating: 100% (QA)

Incremental Revenue Units ordered 10000 Price per unit 22 Incremental Re... View the full answer