-unit cost data are direct materials $15, direct labour O, and overhead $16 (75% variable). Vaughn has no ess capacity to accept a special order for 36,400 unit discount of 25% from the regular price. Selling costs ociated with this order would be $4 per unit. Indicate 1.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vaughn Co. sells product P-14 at a price of $48 a unit. The
per-unit cost data are direct materials $15, direct labour
$10, and overhead $16 (75% variable). Vaughn has no
excess capacity to accept a special order for 36,400 units,
at a discount of 25% from the regular price. Selling costs
associated with this order would be $4 per unit. Indicate
the net income (loss) that Vaughn would realize by
accepting the special order. (Enter loss with a negative sign
preceding the number, e.g. -15,000 or parenthesis, e.g.
(15,000).)
Incremental income (loss)
Vaughn Co. should not accept the special order.
(327,600)
Transcribed Image Text:Vaughn Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Vaughn has no excess capacity to accept a special order for 36,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Vaughn would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Vaughn Co. should not accept the special order. (327,600)
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