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2) Ratzlaff Company has a curent production level of 20,000 units per month. Unit costs at this level are: Direct materials Direct labor Variable overhead
2) Ratzlaff Company has a curent production level of 20,000 units per month. Unit costs at this level are: Direct materials Direct labor Variable overhead Fixed overhead Marketing-fixed Marketing/distribution- variable S0.25 0.40 0.15 0.20 0.20 0.40 Current monthly sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted? (amount and indicate increase or decrease)
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