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Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to purchase 26,000 units of

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Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to purchase 26,000 units of a power steering stem cent 1195 per unit. Peter Wu, vicepresident of sales, notes that although there will be an additional $3.00 shipping cost for each component, he thinks that accepting the order wit out the company's Foot is the door of an expanding international market. To determine variable and fed costs, Huang's accountant used the high-low method with the following production and cost information for the last two years 199,000 units $51429,500 Total CMS Total costa per unit 235,000 units $57,567,500 $244.97 TJ. Can, vice-president of engineering, feels that any new market should first show its profitability and that the $195 per unit offer is not only below the regular $270 selling price, but it's below the of the component. She also points out that there will be additional setup costs of $200,000 and that Huang will have to be some specialement for $220,000 REQUIRED (6 tries) 1. Using the high-low method to budget costs of the social order, what would the expected profit on the special order to use a given for us? Aww Ties / Mwana wa NEW

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