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Harley Company




Question;In Harley Company it costs $29 per unit ($17 variable and;$12 fixed) to make a product that normally sells for $54. A foreign wholesaler;offers to buy 3,500 units 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 $ $;$;Costs?Manufacturing;Shipping;Net income/(loss);$ $ $;The special order should be.


Paper#49254 | Written in 18-Jul-2015

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