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4. IF the line is operating at full capacity, what would be the profit (loss) on the special order? What if no sales commissions were
4. IF the line is operating at full capacity, what would be the profit (loss) on the special order? What if no sales commissions were paid on the order?
Ounces Sold 2,000,000 $1,120,000 Sales Revenue Variable Costs Direct Materials $45,999 Direct Labor $122,500 Variable Manufacturing a $84,950 Variable Selling and Admir $148,000 Total Variable Costs Contribution Margin Fixed Costs Manufacturing Costs $200,000 S&A Costs $25,000 Total Fixed Costs Operating Income $401,449 $718,551 $225,000 $493,551 Variable S&A drops 10% on this special orderStep by Step Solution
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