Question
Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials Direct labor Variable
Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials Direct labor Variable overhead Fixed overhead Marketing fixed Marketing/distribution variable $0.27 0.44 0.15 0.21 0.22 0.44 Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1,570 units at $2.20 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted? our Du OA. $2,103.80 increase in operating profits OB. $5,322.30 decrease in operating profits OC. $2,103.80 decrease in operating profits: OD. $5,322.30 increase in operating profits rent
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