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A company has received a request to produce a special order of 10,000 units at a sales price of $30 per unit. The following information

A company has received a request to produce a special order of 10,000 units at a sales price of $30 per unit. The following information relates to production of the product: Direct materials

$8.00 per unit

Direct labor

3.00 per unit

Variable overhead

2.00 per unit

Fixed overhead

1.50 per unit

  • Assuming there is idle physical plant capacity to accept this special order and it will not affect existing sales, by what amount would the company's income increase if the special order were to be accepted?
  • A.
  • $190,000
  • B.
  • $155,000
  • C.
  • $300,000
  • D.
  • $170,000

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