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A product has a $100 per unit selling price, $40 variable cost per unit and $100,000 of fixed costs. It currently sells 40,000 units and
A product has a $100 per unit selling price, $40 variable cost per unit and $100,000 of fixed costs. It currently sells 40,000 units and has capacity to produce another 100,000 units. A special order comes in for 5,000 units at a sales price of $80 each. The job will require $10 of overtime costs per unit and 2,000 of additional transportation costs. Assuming we accept the special order, how much will this increase our profit or
Select one:
A. <$10,000>
B. $8,000
C. 0
D. $13,000
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