Lattimer Company had the following results of operations for the past year: Contribution margin income statement...

Transcribed Image Text:

Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (17,100 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Per Unit Annual Total $ 12.00 $ 205,200 1.50 25,650 4.00 68,400 1.00 17,100 5.50 94,050 1.00 17,100 1.40 23,940 $ 3.10 $ 53,010 Income A foreign company offers to buy 5,700 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 27,100 units. If Lattimer accepts this additional business, the special order will yield a Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (17,100 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Per Unit Annual Total $ 12.00 $ 205,200 1.50 25,650 4.00 68,400 1.00 17,100 5.50 94,050 1.00 17,100 1.40 23,940 $ 3.10 $ 53,010 Income A foreign company offers to buy 5,700 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 27,100 units. If Lattimer accepts this additional business, the special order will yield a