Honey Hollow Hills Academy had the following results of oper…
Honey Hollow Hills Academy had the following results of operations for the past year: Income Statement Honey Hollow Hills Income Statement Sales (50,000 units at $21.50) $1,075,000 Materials and direct labor (645,000) Overhead (20% variable) (85,000) Selling and administrative expenses (all fixed) (103,450) Operating income $ 241,550 A foreign company (whose sales will not affect Honey Hollow Hill’s regular sales) offers to buy 5,000 units at $10.50 per unit. In addition to variable manufacturing costs, there would be transportation costs of $1,400 in total on these units. Prepare an analysis of this additional business to show whether Honey Hollow should take this order. ***You must show your work to receive full credit.***