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Determine the increase in profit if the special order is accepted QUESTION 8 10 points Save Answer Duoco estimates the following cost information for its
Determine the increase in profit if the special order is accepted
QUESTION 8 10 points Save Answer Duoco estimates the following cost information for its sole product, The Treo, in the upcoming year (see table). Duoco has the capacity to manufacture 35,000 units annually. Manufacturing Costs: Variable costs: $6.25 per unit manufactured Fixed costs: $110,000 annually Operating Expenses: Variable Selling and Administrative costs: $3.75 per unit sold Fixed Selling and Administrative costs: $90,000 annually DuoCo expects to sell 25,000 units next year at the normal price of $22 each. A company has approached Duoco about a special order of 8,000 units at a price of $14.6 each. Determine the increase in profit if the special order is accepted. Assume the special order will not impact normal sales and that all normal costs will be incurred. DuoCo does not anticipate having to expand either manufacturing or selling and administrative capacity to fill the order. (Round to the nearest $1.00)
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