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Direct materials $ 1 . 6 0 Direct labor $ 3 . 0 0 Variable manufacturing overhead $ 0 . 8 0 Fixed manufacturing overhead
Direct materials $
Direct labor $
Variable manufacturing overhead $
Fixed manufacturing overhead $
Variable selling and administrative expenses $
Fixed selling and administrative expenses $
The normal selling price is $ per unit. The companys capacity is units per year. An order has been received from a mailorder house for units at a special price of $ per unit. This order would not affect regular sales or the companys total fixed costs.
Required:
What is the financial advantage disadvantage of accepting the special order?
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