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AccustartMetal Works received an offer from a big-box retail company to purchase2,880metal outdoor tables for $208each.AccustartMetal Works accountants determine that the following costs apply to
AccustartMetal Works received an offer from a big-box retail company to purchase2,880metal outdoor tables for $208each.AccustartMetal Works accountants determine that the following costs apply to the tables:
Direct material$124 Direct labor48 Manufacturing overhead67 Total $239
Of the $67of overhead, $13is variable and $54relates to fixed costs. The $54of fixed overhead is allocated as $1.06per direct labor dollar.
What will be the real effect on profit if the order is accepted?
The profit will (Increase? or Decrees?) By how many $
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