ACC 561- In Harley Company

$6.00

Description

In Harley Company it costs $30 per unit ($19 variable and $11 fixed) to make a product that normally sells for $54. A foreign wholesaler offers to buy 4240units at $28 each. Harley will incur special shipping costs of $1 per unit. Assuming that Harley has excess operating capacity.

Indicate the net income (loss) Harley would realize by accepting the special order.(If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

Reject
Order

Accept
Order

Net Income
Increase
(Decrease)

Revenues $.wiley.com/edugen/art2/common/pixel.gif”> $.wiley.com/edugen/art2/common/pixel.gif”> $.wiley.com/edugen/art2/common/pixel.gif”>
Costs—Manufacturing .wiley.com/edugen/art2/common/pixel.gif”> .wiley.com/edugen/art2/common/pixel.gif”> .wiley.com/edugen/art2/common/pixel.gif”>
Shipping .wiley.com/edugen/art2/common/pixel.gif”> .wiley.com/edugen/art2/common/pixel.gif”> .wiley.com/edugen/art2/common/pixel.gif”>
Net income/(loss) $.wiley.com/edugen/art2/common/pixel.gif”> $.wiley.com/edugen/art2/common/pixel.gif”> $.wiley.com/edugen/art2/common/pixel.gif”>

The special order should be.wiley.com/edugen/art2/common/pixel.gif”>.

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