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Glade Company produces a single product. The cost of producing and selling a single unit of this product at the company's current activity level of
Glade Company produces a single product. The cost of producing and selling a single unit of this product at the company's current activity level of 8,000 units per month are: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling & Admin Expenses Fixed Selling & Admin Expenses $2.50 $3.00 $0.50 $4.25 $1.50 $2.00 The normal selling price is $15 per unit. The company's capacity is 10,000 units per month. An order has been received from a potential customer overseas for 2,000 units at a price of $12.00 per unit. This order would not affect regular sales. Required: 1) If the order is accepted, by how much will monthly profits increase or decrease? (The order would not change the company's fixed costs.) Show all computations to earn full points. Recall that total product cost is the sum of direct material, direct labor, variable overhead and variable selling and admin. In this instance, all of the fixed costs qualify as period costs and no additional costs are incurred
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