1. Murphy's Paw produces and sells 1,000 units of a single product per year (with excess capacity of 400 units). The cost of producing and selling a single unit is:

   Direct material	$9
   Direct labor	11
   Allocated variable overhead	4
   Allocated fixed overhead	2

   The normal selling price is $50.00 per unit. An order has been received from an overseas company for 100 units at the special price of $40.00 per unit. What would be the additional income (or loss) of taking on this special order?

   Use a - sign for a loss.

0.5 points

Question 18

1. Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $840,000 in variable costs and $130,000 in fixed costs to make and sell 10,000 woks at $100 each.

   If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75 each, how much would it make or lose on this special order?

   ENTER A LOSS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000