
FINANCIAL ACCOUNTING
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Author: Libby
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ACC-650 TOPIC 5 Assignment X
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Question 9 of 11 - ACC-650 TOP X
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Return to the original data. Monk Builders has just signed a contract with the state government to replace the windows in low-
income housing units throughout the state. Monk needs 80,000 windows to complete the job and has offered to buy them from
Wilson at a price of $120.00 per window. Monk will pick up the windows at Wilson's plant, so Wilson will not incur the $2 per
window shipping charge. In addition, Wilson will not need to pay a distributor's commission, since the windows will not be sold
through a distributor.
Calculate the contribution from special order, contribution lost from regular sales and the net contribution from special order.
Contribution from special order
$
92
$
LA
132
Contribution lost from forgone regular sales
$
40
Net contribution from special order
(c2)
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Should Wilson accept Monk's offer?
Wilson
should
accept Monk's offer.
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