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Gallerant Corporation has received a request for a special order of 5.000 units of product A50 for $2810 each. Product Ads unt product cost
Gallerant Corporation has received a request for a special order of 5.000 units of product A50 for $2810 each. Product Ads unt product cost is $2755, determined as hows 5 Direct materials Variable amfacturing overhead 2- Find anufacturing overhead Unit product cost $3.15 8.45 7.55 8.40 $37.55 Assume that drect labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead casts. The customer would te modifications made to product A90 that would hose the variable costs by $4.40 per unit and that would require an envestment of $5,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales The company has ample spare capacity for producing the special order The annual financial advantage pisadvantage for the company as a result of accepting this special order should be Mae Chace O 0 14305 504639 $7.805
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