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A company manufactures computers and provides the following cost information for the production of one computer: Direct materials $46 Direct labor 64 Variable manufacturing overhead
A company manufactures computers and provides the following cost information for the production of one computer:
Direct materials $46
Direct labor 64
Variable manufacturing overhead 48
Fixed manufacturing overhead 34
Total cost per unit 192
The $34amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed.
The company has received a special order for 500 computers at a price of $175per unit.
By how much will overall company net income change if this order is accepted?
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