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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
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 $0.25 0.44 0.18 0.21 0.21 0.40 Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1,580 units at $2.10 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? O A. $1,943.40 increase in operating profits OB. $1,943.40 decrease in operating profits O C. $5,198.20 increase in operating profits OD. $5,198.20 decrease in operating profits
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