Sheridan Co. sells product P−14 at a price of $46 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75\% variable). Sheridan Co. has sufficient capacity to accept a special order for 35,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether $heridanco, should accept the special or der. (Enter loss with a negative sign preceding the number, .8,−15,000 or parenthesis, es. (15,000) ) Incremental income (loss) $ Sheridan Co. the special order.

Q&A Education