Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $11.50) $ 172,500 Variable manufacturing costs...
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Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $11.50) $ 172,500Variable manufacturing costs $90,000 Fixed manufacturing costs 13,500 Selling and administrative expenses (all fixed) 28,500 (132,000)Operating income $ 40 , 500 A foreign company whose sales will not affect Lattimer‘s market offers to buy 4,000 units at $6.50 per unit. In addition to existing costs, selling theseunits would add a $0.15 selling cost for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a:
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