Question: Below is a projected income statement for the coming month (Based on selling 30,000 units) DollarsPer unit Salesrevenue$600,000 $600,000/30,000 units = $20.00 Variable cost of

Below is a projected income statement for the coming month (Based on selling 30,000 units)

DollarsPer unit

Salesrevenue$600,000 $600,000/30,000 units = $20.00

Variable cost of goods sold (225,000) $225,000/30,000 units = $7.50

Variable marketing costs(150,000) $150,000/30,000 units= $5.00

Contributionmargin 225,000 $225,000/30,000 units = $7.50

Fixed cost of goods sold (135,000)

Fixed marketing costs( 60,000)

OperatingIncome$ 30,000

The company has a special (one-time) order for 5,000 units to be purchased at a sales price of $11 per unit. Should they sell these 5,000 units for $11?

In addition, no marketing costs will be necessary for the 5,000 one-time-only special order.

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