Hoberman manufactures multiple products.One of their specialty products has the following full unit costs for...
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Hoberman manufactures multiple products.One of their specialty products has the following full unit costs for 75,000 units:
CoursHeroTranscribedText: Manufacturing overhead (75% variable) Selling expenses (30% variable) _ Administrative expenses (10% variable) _ Coldwater, Inc recently approached Hoberman with a special order to purchase 5,000 units for $75. Hoberman currently sells this product to retailers for $95. Capacity is sufcient to produce the extra 5,000 units. Variable selling expenses will be incurred on the special order. REQUIRED 1. Ignoring the special order, create a contribution margin income statement that shows the operating prot of the 75,000 units Hoberman currently sells. 2. Determine the impact on prot of accepting the order. Should Hoberman accept the special order? 3. Determine the minimum price Hoberman would need on the special order so that before tax prots for the company would increase by $180,500
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