Answer 1:
If the order is accepted, the profit will increase by $ 24,750.40
Calculation:
Revenue | $ 59,520.00 |
Cost of goods sold | $ 29,412.80 |
Administrative expenses | $ 5,356.80 |
Net Income | $24,750.40 |
Answer 2:
If the order is accepted, the profit will reduce by $ 6,257.60
Calculation:
Additional material & labor | $ 5,257.60 |
Rental cost | $ 1,000.00 |
Total | $ 6,257.60 |
Answer 3:
If the order is accepted, the profit will reduce by $ 22,140.
Calculation:
Contribution lost (18 - 17.64 * 61,500) | $ 22,140.00 |
In case of any doubt, please comment.
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