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Budgeted income statement For XYZ Company Sales (15,000 Units @ $60) 900,000 Less: Cost Of...

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Budgeted income statement For XYZ Company Sales (15,000 Units @ $60) 900,000 Less: Cost Of Goods Sold: Direct Materials $150,000 300,000 60,000 225.000 Direct Labour Variable Overhead Fixed Overhead Cost Of Goods Sold 735,000 165,000 Gross Profit Less: Operating Expenses: Sales Commission (2 % Of Sales) 18,000 Delivery Expense (Var.) Sales Salaries (Fixed) Administrative (Fixed) Total Operating Expenses Operating Income 90,000 30,000 12,000 150,000 $15,000 Additional Information: Maximum plant capacity 18,000 units (it can be increased to 30,000 units for an additional costs of $ 28,000) XYZ Co. received a special order from Soso company to purchase 2,000 units @S 45 per unit (FOB factory, i.e., the buyer will pay the delivery costs). The special order will not affect the demand from the regular customers. Required: 1. Should the manager of XYZ Co. accept or reject the special order? How much is the change in XYZ net income if it accepted the order? 2. What is the Minimum price acceptable if Soso Company wants 6,000 units instead of 2000 units

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