chp 23 hw q2

Helix Company is approached by a new customer to provide 2,150 units of its product at a special price of 58 per unit The normal selling price of the product is $10 per unit Helix is operating at 75% of its capacity of 10 500 units. No incremental fixed overhead will be incurred because of this order. Also, there will be no incremental foed general and administrative costs because of this order a. Special selling price of $8.00 per unit b. Direct materials of $1.00 per unit Direct labor of $2.00 per unit d. Variable overhead of $150 per unit e Fixed overhead of $75 per unit t. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? Per Unit Total SPECIAL OFFER ANALYSIS Sales Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative