Answer:
Incremental Analysis for special order
units <u>10,000</u>
offer price $290,000
Variable cost:
Cost of goods sold($22.5 *10,000) 225,000
Selling and Administrative expenses
($2.05*10,000) 20,500
shipping cost (0.77*10,000) <u> 7,700 </u> <u> (253,200)</u>
Additional contribution <u> 36,800</u>
Explanation:
variable cost goods sold per unit = ( 3,633,000 - 960,000)/118800 = $22.5
Variable selling and admin expense per unit = ( 517,540 - 274,000)/118800
= $ 2.05