ABCorporation provided the following information with regard to its product Batchoy.

Regular unit sales price200

Regular unit production costs:

Direct materials 40

Direct labor 30

Variable overhead 20

Fixed overhead 15

Regular unit marketing cost

Variable expense 8

Fixed expense 7

Maximum capacity 50,000 units

Present capacity 46,000 units

Special sales order 3,000 6,000 units

Special unit sales price 120

Required:

1)Determine the effect to profit if a 3,000-unit special sales order is accepted ineach of the independent cases below:a)unit variable marketing costisP5.50b)total fixed overhead increased by 10%

2)Determine the effect to profit if the 6,000-unit special salesorder is accepted ineach of the independent cases below:a)excess order is bought froma competitor at the prevailing market priceb)excess order is outsourced froman independent supplier at 10 higher than the relevant costs of producing the part