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McCarley Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.41
McCarley Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.41 Variable overhead 0.17 Fixed overhead 0.25 Marketing - fixed 0.25 Marketing/distribution. variable 0.41 Current monthly sales are 18,000 units. Huey Company has contacted McCarley about purchasing 1520 units at $2.40 each. Current sales would NOT be affected by the one-time-only special order and variable marketing/distribution costs would NOT be incurred on the special order. What is McCarley Manufacturing's change in operating profits if the special order is accepted? Select one A $5532.80 increase in operating profits B. $5532.80 decrease in operating profits C. $2386.40 increase in operating profits D. $2386.40 decrease in operating profits
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