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?

A company manufacture three different product lines, model 1 model 2 and model 3 . considerable market demand exists for all models. The following per unit data apply :

Model1model2model3

Selling price $55$69$78

Direct materials 101010

Direct labor (15 per hour)151530

Variable support costs71414

(7 per machine hour)

Fixed support costs 111111

If there is a machine breakdown, which model is the most profitable to produce?

A company manufactures cell phones charges and is considering raising the price by .75 cents a unit for the coming year. With a .75 cent price increase, demand is expected to fall by 700 units.

Demand 79000 units 72000 units

Selling price$8.50 $9.25

Incremental cost per unit$5.80$5.80

If the price increase is implemented, operating profit is projected to

a)increase by 5250

b)increase by 35100

c)decrease by 7000

d)decrease by 5250