Question
Mouche has just received a special order from a foreign customer for 6,000 units of its product (contact lenses) at a price of $ 7
Mouche has just received a special order from a foreign customer for 6,000 units of its product (contact lenses) at a price of $ 7 each. The fly company has a production capacity of 90,000 units and its fixed manufacturing cost is $ 144,000. Currently the fly company sells 80,000 units of its contact lenses at a retail price of $ 11 At this level of sales, the manufacturing cost is as follows:
Variable manufacturing cost $ 4.60
Fixed manufacturing cost $ 1.80
Variable Selling Fee $ 1.00
If the special order is accepted, the Mouche company will have no sales charges but will have to bear a packaging charge of $ 0.30 per unit If the special order is accepted, how much will Mouche's profit increase?
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