In Harley Company it costs $30 per unit ($19 variable and $11 fixed) to make a p

Question

In Harley Company it costs $30 per unit ($19 variable and $11 fixed) to make a product that normally sells for $48. A foreign wholesaler offers to buy 3,420 units at $23 each. Harley will incur special shipping costs of $2 per unit. Assuming that Harley has excess operating capacity.

Indicate the net income (loss) Harley would realize by accepting the special order. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.) other columnes au pbsrtive and sbtrac35000). Enter all other amounts in Reject Order Accept Order Net Income Increase (Decrease) Revenues Costs-Manufacturing Shipping Net income/oss) Net income/(loss) s The special order should be

Explanation / Answer

No of Units=3420

Pariculars

Reject Order

Accept Order

Net Income Increase (Decrease)

Revenue

23

Cost-Manufacturing

                                                19

Shipping

                                                   2

Net Income/(Loss)

                                                   1

                           3,420

The special order should be

Accepted

Here we don’t have complete information to anaylaze reject order income like no units sold locally

No of Units=3420

Pariculars

Reject Order

Accept Order

Net Income Increase (Decrease)

Revenue

23

Cost-Manufacturing

                                                19

Shipping

                                                   2

Net Income/(Loss)

                                                   1

                           3,420

The special order should be

Accepted

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.