FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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At Crane Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player that normally sells for $46. A foreign
wholesaler offers to buy 3,180 units at $26 each. Crane Electronics will incur special shipping costs of $4 per unit. Assuming that
Crane Electronics has excess operating capacity, indicate the net income (loss) Crane Electronics would realize by accepting the special
order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Revenues
Costs-Variable manufacturing
Shipping
LA
Net income
$
LA
The special order should be
Reject
Order
+A
Accept
Order
+A
$
$
+A
Net Income
Increase (Decrease)
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Transcribed Image Text:At Crane Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player that normally sells for $46. A foreign wholesaler offers to buy 3,180 units at $26 each. Crane Electronics will incur special shipping costs of $4 per unit. Assuming that Crane Electronics has excess operating capacity, indicate the net income (loss) Crane Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping LA Net income $ LA The special order should be Reject Order +A Accept Order +A $ $ +A Net Income Increase (Decrease)
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