Lattimer Company Had the Following Results of Operations for the Past

question 186

Multiple Choice

Lattimer Company had the following results of operations for the past year: $$\begin{array}{l}\text { Sales } ( 15,000 \text { units at } \$ 12 ) &&\$18,000\\\text { Variable manufacturing costs } & \$ 97,500 & \\\text { Fixed manufacturing costs } & 21,000 & \\\text { Selling and administrative expenses (all fixed) } & 36,000 & ( 154,500 ) \\\text { Operating income } & & \$ 25,500\end{array}$$ 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. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a:

• A) $3,750 profit.
• B) $3,250 loss.
• C) $8,250 loss.
• D) $2,000 loss.
• E) $5,000 profit.

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A spontaneous response involving feelings and emotions triggered by an external event or internal thought process.

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Nutritional choices that are high in unhealthy fats, sugars, and salts, contributing to poor health outcomes when consumed regularly.