Metlock Co. sells product P-14 at a price of $52 a unit. The per-unit cost data...

 

Transcribed Image Text:

Metlock Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $12 (75% variable). Metlock has no excess capacity to accept a special order for 38,000 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Metlock would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Metlock Co. $ the special order. Metlock Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $12 (75% variable). Metlock has no excess capacity to accept a special order for 38,000 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Metlock would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Metlock Co. $ the special order.

Answer rating: 100% (QA)

To calculate the incremental income loss for Metlock Co by accepting the spec... View the full answer