Lattimer Company Had the Following Results of Operations for the Past

question 128

Multiple Choice

Lattimer Company had the following results of operations for the past year: 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.

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