How do i calculate the net income for a special order?   For example: Blowing Sand Company has just received a one-time offer to purchase 10,200 units of its Gusty model for a price of $34 each. The Gusty model costs $36 to produce ($29 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter10: Short-term Decision Making
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Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...
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How do i calculate the net income for a special order?

 

For example: Blowing Sand Company has just received a one-time offer to purchase 10,200 units of its Gusty model for a price of $34 each. The Gusty model costs $36 to produce ($29 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.

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