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2. A bakeshop bakes and sells bread for BD 3.15. The production costs for producing 600,000 ads are the following: Direct materials per unit BD
2. A bakeshop bakes and sells bread for BD 3.15. The production costs for producing 600,000 ads are the following: Direct materials per unit BD 0.55 Page 1 of Direct labor per unit 0.11 Variable overhead per unit 0.14 Fixed overhead 132,000 The bakeshop received a special order for 15,000 breads to be sold at BD 2.85. The company will be paying additional fixed overhead of BD 25,000. Variable overhead will not be affected by it. Show how the net income will change if the company accepts the special order. [5 marks] Particulars
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