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dditional Business Decision A company receives a special order for 600 units that requires stamping the buyer's name on each unit, yielding an additional fixed
dditional Business Decision A company receives a special order for 600 units that requires stamping the buyer's name on each unit, yielding an additional fixed costs of $1200 to its normal costs. Without the order, the company is operating at 80% capacity and produces 22,500 units of product below. The company's normal selling price is $22 per unit. The sales price for the special order is $18 per unit. Variable Costs (22500 units Cost per Fixed costs Unit Direct Materials Direct Labor Overhead (30%) Selling Expenses (60% variable) 112,500 $5.00 180,000 $8.00 0,000 $0.80 42,000 75,000 $2.00 30,000 The special order will not affect normal unit sales and will not increase fixed overhead and selling expenses. Variable selling expenses on the special order are reduced to one-half of the normal amount If the company accepts this special order, Net Income will increase by $ Please enter the number ONLY!! Do not enter dollar signs, commas, decimals, texts ect
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