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Coronado Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct
materials $16. direct labour $12. and overhead $12 (75% variable). Coronado has no excess
capacity to accept a special order for 38,700 units, at a discount of 25% from the regular price.
Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that
Coronado would realize by accepting the special order. (Enter loss with a negative sign
preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $
Coronado Co. should accept V the special order.

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Coronado Co. sells product P-14 at a price of $52 a unit. The per-un.pdf

  • 1. Coronado Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16. direct labour $12. and overhead $12 (75% variable). Coronado has no excess capacity to accept a special order for 38,700 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Coronado would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Coronado Co. should accept V the special order.