=+ variable marketing costs (sales commissions) of 5% of revenues fixed monthly costs of $65000. During
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=+◗ variable marketing costs (sales commissions) of 5% of revenues
◗ fixed monthly costs of $65000.
During October 2014, Ann Daniels, a Dill Company salesperson, asked the CEO for permission to sell 1000 packs at $4 per pack to a customer not in Dill’s normal marketing channels. The CEO refused this special order because the selling price was below the total budgeted manufacturing cost.
Required 1 What would have been the effect on monthly operating income of accepting the special order?
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Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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