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Question
Lattimer Company had the following results of operations for the past year:| Sales (15,000 units at $12) | $180,000 | |
| Variable manufacturing costs | $97,500 | |
| Fixed manufacturing costs | 21,000 | |
| Selling and administrative expenses (all fixed) | 36,000 | (154,500) |
| Operating income | $ 25,500 |
A foreign company whose sales will not affect Lattimer's market offers to buy 5,000 units at $7.50 per unit. In addition to existing costs, selling these units would add a $0.25 selling cost for export fees. If Lattimer accepts this additional business, the special order will yield a:
A.$2,000 loss.
B.$8,250 loss.
C.$3,750 profit.
D.$3,250 loss.
E.$5,000 profit.
Answer
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