Question
1. Bertans has received a special order for 4,200 units of its product at a special price of $22. The product normally sells for $33
1. Bertans has received a special order for 4,200 units of its product at a special price of $22. The product normally sells for $33 and has the following manufacturing costs:
Per unit | |||
Direct materials | $ | 8 | |
Direct labor | 4 | ||
Variable manufacturing overhead | 3 | ||
Fixed manufacturing overhead | 2 | ||
Unit cost | $ | 17 |
Assume that Bertans has sufficient capacity to fill the order. If Bertans accepts the order, what effect will the order have on the companys short-term profit?
2. Bertans has received a special order for 4,200 units of its product at a special price of $22. The product normally sells for $33 and has the following manufacturing costs:
Per unit | |||
Direct materials | $ | 8 | |
Direct labor | 4 | ||
Variable manufacturing overhead | 3 | ||
Fixed manufacturing overhead | 2 | ||
Unit cost | $ | 17 |
Assume that Bertans' production is at full capacity. If Bertans accepts the order, what effect will the order have on the companys short-term profit?
Wanted to know why I got the first one right and the second one wrong I put 29,400 for both
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