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A customer has made a special order to buy 1,000 units at RM5 per unit. This order can be filled with factory capacity and
A customer has made a special order to buy 1,000 units at RM5 per unit. This order can be filled with factory capacity and does not affect the total fixed cost for the month. This order also does not require marketing costs. Based on the answer, what is the impact on the company's profits if this special order is accepted? (Answer accept order, increase profit RM1,400) Question 3 Baiduri Entreprise makes and sells a product of RM8 per unit. The cost per unit of products are as follows: ITEM Direct material Direct labor Manufacturing overhead: Variable overhead Fixed overhead (based on RM40,000 per month, 20,000 units per month) RM 2 1 0.50 2.00 Marketing and administration costs: Variable cost 0.20* Fixed cost (based on RM10,000 per month, 20,000 units per month) 0.50 Total 6.20 *Includes marketing costs of RM0.10 per unit.
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