Below is cost data for a company: Direct Materials Direct Labor Unit Cost $9.36 $4.19 Variable Manufacturing Overhead $11.12 Fixed Costs $4.43 Selling and
Below is cost data for a company: Direct Materials Direct Labor Unit Cost $9.36 $4.19 Variable Manufacturing Overhead $11.12 Fixed Costs $4.43 Selling and Administrative Variable $2.14 Expense The company manufactures a product that is normally sold for $40.00 each. Plant capacity is 850,000 units annually, but normal volume is 600,000 units. The above costs are at that normal volume level. A customer offered to purchase 50,000 units at $35.99 each to be packaged in large batches. not the normal individual product containers. This will result in variable selling and administrative expense per unit decreasing by 56 %. What is the extra operating income this company will receive if they accept this order (Enter your answer for ALL 50,000 units in the special order). Round your answer the nearest whole number. Do not round any intermediate calculations.
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