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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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