Business, 24.08.2021 04:50 glocurlsprinces

The company manufactures boats. Their newest product sells for $1100. The company produces and sells 3,500 units per year. Cost data follows: Variable manufacturing $650 per unit

Variable selling and administrative $160 per unit

Fixed manufacturing $420,000 per year

Fixed selling and administrative $320,000 per year

A potential deal has come up for a one-time sale of 20 units at a special price of $800 per unit.

The sale will not negatively impact the company's regular sales activities.

It will require the normal variable manufacturing costs and variable selling and administrative costs.

There is plenty of excess capacity and the deal will not impact fixed costs.

Create a Differential Analysis of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted.

Based on your analysis, would you accept or reject the order? Why?

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The company manufactures boats. Their newest product sells for $1100. The company produces and sells...

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