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Harcourt Manufacturing (M) has the capacity to produce 10,900 fax machines per year

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Harcourt Manufacturing (M) has the capacity to produce 10,900 fax machines per year. HM currently produces and sells 7.900 units per year. The fax machines normally sell for $190 each, Modem Products has offered to buy 2.900 fax machines from HM for $105 each. Unit-level costs associated with manufacturing the fox machines are $ each for direct labor and $58 each for direct materials. Product-level and facility level costs are $59.000 and $74.000, respectively. How much would profit increase (decrease) HM accepted this special order? M Chec HOGO 0.00 O 15400 or o $2.000
Harcourt Manufacturing (HM) has the capacity to produce 10.900 fax machines per year. HM currently produces and sells 7900 units per year, HM currently leases its excess capacity for a rental fee of $41,000. The fax machines normally sell for $190 each. Modem Products has offered to buy 2.900 fax machines from HM for $105 each Unit-level costs associated with manufacturing the fax machines are $33 each for direct labor and $58 each for direct materials. Product-level and facility level costs are $59.000 and $74,000, respectively. Based on this information (ignore qualitative characteristics) Multiple Choice HM should reject the offer because accepting it will reduce profitability by $400 HM should accept the offer because accepting it will contribute $10,900 to profit, HM should reject the offer because accepting it will reduce profitability by $10.900 HM should accept the offer because accepting it will contribute $41000 to profit
A condensed Income statement for Gilbert, Inc. follows: (amounts are shown in thousands) Products Sales (total) Total Unit-level Costs Contribution Margin Company-wide Facility-Level Costs Income (Loss) F G H Total $ 288 $ 188.e $ 400 $868.0 (152) (161.6) (216) (529.6) 128 26.4 184 338.4 (26.6) (31.6) (56) (114.2) $ 101.4 S (5.2) S 128 $ 224.2 Gilbert's management is considering whether to eliminate manufacturing product G at the beginning of the next year. The elimination will have no effect on the sales or unit level costs of products F and H. The change in income that would result from eliminating product is Multiple Choice $31600 $26.400 decrease