Question
A corporation has a plant capacity of 200000 units per month unit costs at capacity are: Direct materials $6.00 Direct labor 5.00 Variable overhead 4.00
A corporation has a plant capacity of 200000 units per month unit costs at capacity are:
Direct materials $6.00
Direct labor 5.00
Variable overhead 4.00
Fixed overhead2.00
Marketing-fixed6.00
Marketing/distributionvariable4.60
Currently monthly sales are 190000 units at $30 each. A potential new costumer has contacted the corporation about purchasing 2500 units at 24.00 each. Current sales would not be affected by the one-time-only special order. what is the corporation's change in operating profits if the one-time-only special order is accepted?
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