Carla Vista Company produced and sold 48,000 units of product and is operating at 70% of...

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Carla Vista Company produced and sold 48,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: Sales price $100 Variable manufacturing cost $75 Fixed manufacturing cost ($480,000+ 48,000) 10 85 Profit per unit $15 The company received a proposal from a foreign company to buy 8,800 units of Carla Vista Company's product for $80 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Carla Vista Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts) CARLA VISTA COMPANY Incremental Analysis Proposal to sell 8,800 units at $80 Net Income Increase (Decrease) Accept Order Revenues $ Foxed Costs v Costs eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Reject Order Fixed Costs v Costs eTextbook and Media Save for Later (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. Attempts: 0 of 5 used Submit Answer Carla Vista Company produced and sold 48,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows: Sales price $100 Variable manufacturing cost $75 Fixed manufacturing cost ($480,000+ 48,000) 10 85 Profit per unit $15 The company received a proposal from a foreign company to buy 8,800 units of Carla Vista Company's product for $80 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Carla Vista Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts) CARLA VISTA COMPANY Incremental Analysis Proposal to sell 8,800 units at $80 Net Income Increase (Decrease) Accept Order Revenues $ Foxed Costs v Costs eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Reject Order Fixed Costs v Costs eTextbook and Media Save for Later (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. Attempts: 0 of 5 used Submit Answer

Answer rating: 100% (QA)

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