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74. The Buchanan Company has gathered the following information for a unit of its most popular product: Direct materials $12 Direct labor 6 Overhead (40%
74. The Buchanan Company has gathered the following information for a unit of its most popular product: Direct materials $12 Direct labor 6 Overhead (40% variable) 1_0 Cost to manufacture 28 Desired markup (50%) Target selling price $ The above cost information is based on 10,000 units. A distributor has offered to buy 2,000 units at a price of $32 per unit. This special order would not disturb regular sales. Special packaging and other selling expenses would be an additional -$0.50 per unit for the special order. If the special order is accepted, Buchanan's operating prots will increase by: A. $4,00 0. B. $6,40 0. C. $8,00 0. D. $19,00 0. E. $20,00
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