5. Hannah Corporation has the following budgeted operating results for 2024: Revenues (10,000 units @ $75)...
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5. Hannah Corporation has the following budgeted operating results for 2024: Revenues (10,000 units @ $75) Variable costs Manufacturing Selling Contribution margin Fixed costs: Manufacturing Selling Operating income $750,000 $300,000 90,000 390,000 $360,000 $160,000 100 000 260 000 100,000 range. A foreign wholesaler wants to buy 2,000 units for $40 per unit. All fixed costs would remain within the relevant There will be no variable selling costs on the special-order units. Alexander Corporation can produce 15,000 units per year. Required: a. Redo the income statement assuming the special order of 2,000 units was accepted. b. Should Alexander Corporation produce the special order? Justify your answer. If Alexander Corporation accepts per unit. the special order, they must make and sell 2,000 units for $40 C. Should Alexander Corporation produce a special order for 6,000 units for $40 per unit? Justify your answer by redoing the income statement, assuming it is the special order. If Alexander Corporation accepts the special order, they must produce and sell the 6,000 units for $40. In other words, they may lose regular customers. 5. Hannah Corporation has the following budgeted operating results for 2024: Revenues (10,000 units @ $75) Variable costs Manufacturing Selling Contribution margin Fixed costs: Manufacturing Selling Operating income $750,000 $300,000 90,000 390,000 $360,000 $160,000 100 000 260 000 100,000 range. A foreign wholesaler wants to buy 2,000 units for $40 per unit. All fixed costs would remain within the relevant There will be no variable selling costs on the special-order units. Alexander Corporation can produce 15,000 units per year. Required: a. Redo the income statement assuming the special order of 2,000 units was accepted. b. Should Alexander Corporation produce the special order? Justify your answer. If Alexander Corporation accepts per unit. the special order, they must make and sell 2,000 units for $40 C. Should Alexander Corporation produce a special order for 6,000 units for $40 per unit? Justify your answer by redoing the income statement, assuming it is the special order. If Alexander Corporation accepts the special order, they must produce and sell the 6,000 units for $40. In other words, they may lose regular customers.
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