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Hip Seve & Exh A customer has requested that Lewelling Corporation fill a special order for 2.100 units of product 547 for $39 a und.
Hip Seve & Exh A customer has requested that Lewelling Corporation fill a special order for 2.100 units of product 547 for $39 a und. While the product would be modified sighty for the special order product 547's normal unt product costs $1760 Direct materials Direct labor variable manufacturing overhead Fixed manufacturing overhead Unit product cost $4.50 5.00 1.60 6.58 $17.60 Assume that 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 like modifications made to product 547 that would increase the variable costs by $2.00 per unit and that would require an investment of $15,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's o sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special onder should be Mutiple Choice O O $35300 1547001 $15,200 $1900)
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