Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign precedingthe number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.)$$CULLUMBER COMPANYIncremental AnalysisProposal to sell 8,000 units at $80Reject Order$$Accept Order$$Net IncomeIncrease (Decrease)SUPPO Cullumber Company produced and sold 53,000 units of product and is operating at 70% of plant capacity. Unit information about itsproduct is as follows:Sales priceVariable manufacturing costFixed manufacturing cost ($530,000 ÷ 53,000)Profit per unit$7510$10085$15The company received a proposal from a foreign company to buy 8,000 units of Cullumber Company's product for $80 per unit. This isa one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of CullumberCompany is reluctant to accept the proposal because he is concerned that the company will lose money on the special order.

For taking special order decisions, incremental revenues should be compared with incremental costs.…

Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preced the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) $ CULLUMBER COMPANY Incremental Analysis Proposal to sell 8,000 units at $80 Reject Order $ $ Accept Order $ $ Net Income Increase (Decrease) SU

Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preced the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) $ CULLUMBER COMPANY Incremental Analysis Proposal to sell 8,000 units at $80 Reject Order $ $ Accept Order $ $ Net Income Increase (Decrease) SU

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 15E

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