FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bridgeport Ltd. incurs the following costs to make each custom-made shelf: materials of $8, labour of $13, variable overhead of $5, and fixed overhead of $4. Each shelf normally sells for $45. A customer is offering to buy 1,400 units at $31 each. Bridgeport will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Revenues Costs Net income / (loss) $ $ Reject Order (b) Should Bridgeport accept the special order? $ $ Accept Order Incremental Revenue and Costs $ tA $
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Transcribed Image Text:Bridgeport Ltd. incurs the following costs to make each custom-made shelf: materials of $8, labour of $13, variable overhead of $5, and fixed overhead of $4. Each shelf normally sells for $45. A customer is offering to buy 1,400 units at $31 each. Bridgeport will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Revenues Costs Net income / (loss) $ $ Reject Order (b) Should Bridgeport accept the special order? $ $ Accept Order Incremental Revenue and Costs $ tA $
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