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Cinrich produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was: Direct material
Cinrich produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was: Direct material Direct labor Variable overhead Fixed overhead $ 725,000 475,000 200,000 1,500,000 $ 2,900,000 Total cost At the start of the current year, the company received an order for 3,060 drives from a computer company in China. Management of Cinrich has mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $125 per unit. What will be the effect on profit of accepting the order? (Enter decrease in profit using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) by $ Profit wil v decrease increase
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