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GrangerMetal Works received an offer from a big-box retail company to purchase3,480metal outdoor tables for $248each.GrangerMetal Works accountants determine that the following costs apply to
GrangerMetal Works received an offer from a big-box retail company to purchase3,480metal outdoor tables for $248each.GrangerMetal Works accountants determine that the following costs apply to the tables:
Direct material $154
Direct labor 58
Manufacturing overhead 81
Total $293
Of the $81of overhead, $16is variable and $65relates to fixed costs. The $65of fixed overhead is allocated as $1.26per direct labor dollar.
(a)What will be the real effect on profit if the order is accepted?
The profit willselect an optionamount__________
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