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Given time 10mins 5. A customer has requested that Gamba Corporation fill a special order fo units of product Q41 for $25.00 a unit. While

Given time 10mins image text in transcribed
5. A customer has requested that Gamba Corporation fill a special order fo units of product Q41 for $25.00 a unit. While the product would be modi slightly for the special order, product Q41's normal unit product cost is S Direct materials Direct labor Variable manufacturing overhead. Fixed manufacturing overhead Unit product cost. 5.70 3.40 5.80 S21.40 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would li modifications made to product Q41 that would increase the variable costs by S7.00 per unit and that would require an investment of S15,000 in special m 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. Require a. What is the minimum price at which Gamba Corporation will accept t Show you work. Calculate the effect on Gamba Corporation's operating profit should be accepted b

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