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DuoCo estimates the following cost information for its sole product, The Tree, in the upcoming year {see table]. DuoCo has the capacity to manufacture 35,UDD
DuoCo estimates the following cost information for its sole product, The Tree, in the upcoming year {see table]. DuoCo has the capacity to manufacture 35,UDD units annually. Manufacturing Costs: Variable costs: $T.U per unit manufactured Fixed costs: $140,0 annually Operating Expenses: Variable Selling and Administrative costs: $3.02 per unit sold Fixed Selling and Administrative costs: $E, annually DuoCo expects to manufacture and sell 25, units next year at the normal price of $22 each. A company has approached DuoCo about a special order to purchase E,D units at a price of $15-2 each. Determine the total profit for the year if the special order is accepted. Assume the special order will not impact normal sales and that all normal costs will be incurred for the special order. DuoCo does not anticipate having to expand either manufacturing or selling and administrative capacity to fill the order.(Eound to the nearest $1.90]
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