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Calculate the total incremental profit from the special order. (Round to the nearest $1.00) QUESTION 9 10 points Corda Company produces a single product and
Calculate the total incremental profit from the special order. (Round to the nearest $1.00)
QUESTION 9 10 points Corda Company produces a single product and has capacity to produce 120,000 units per month. corda currently sells and produces 80,000 units per month. Costs at this level of activity are given in the table below. The normal selling price of the product is $100 per unit. A new customer offers to purchase 20,000 units for $71 per unit. If the special order is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special order would not affect its normal sales. Per Unit Total Direct materials (variable) $12.50 $1,000,000 Direct labor (variable) $29.00 $2,320,000 Variable overhead (mfg) $10.00 $ 800,000 Fixed overhead (mfg) $17.50 $1,400,000 Fixed general and administrative $13.00 $1,040,000 Totals $82.00 $6,560,000 Calculate the total incremental profit from the special order. (Round to the nearest $1.00)
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