Lattimer Company had the following results of operations for the past year:

Sales (15,000 units at $11.60)		$174,000
Variable manufacturing costs	$91,500
Fixed manufacturing costs	15,000
Selling and administrative expenses (all fixed)	30,000	(136,500)
Operating income		$37,500

A foreign company whose sales will not affect Lattimer's market offers to buy 4,200 units at $6.70 per unit. In addition to existing costs, selling these units would add a $0.17 selling cost for export fees. If Lattimer accepts this additional business, the special order will yield a:

$1,806 profit.

$2,520 profit.

$1,680 loss.

$6,594 loss.

$2,394 loss

Answer rating: 100% (QA)

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