Question
Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $ 165 comma 000 $165,000 Direct labor
Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $ 165 comma 000 $165,000 Direct labor incurred $ 189 comma 000 $189,000 Variable manufacturing overhead $ 121 comma 000 $121,000 Variable selling and administrative expenses $ 72 comma 000 $72,000 Fixed manufacturing overhead $65,000 Fixed selling and administrative expenses $12,000 Units produced and sold 24 comma 000 24,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5 comma 500 5,500 units at a sale price of $ 42 $42 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)
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