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Nancy Co. produces a single product. The company's March 2021 income statement is as follows: Sales Revenue $36,000 vas.cmu.edu/courses/26426/quizzes/79144/take 2:23 PM Quiz: 2022 Midterm Exam
Nancy Co. produces a single product. The company's March 2021 income statement is as follows: Sales Revenue $36,000 vas.cmu.edu/courses/26426/quizzes/79144/take 2:23 PM Quiz: 2022 Midterm Exam Cost of goods sold - 33,000 Gross profit $ 3,000 Selling and administrative 2,000 Net income $ 1,000 The total number of units produced and sold in March 2021 was 600. Nancy's total manufacturing costs were as follows: $ Direct materials 6,000 Direct labor (all variable) 9,600 Variable manufacturing overhead 5,400 Fixed manufacturing overhead 12,000 Total $33,000 Average total cost per unit $55Selling and administrative expenses are all xed. Nancy just received a special order from a rm in Spain to purchase 450 units at $55 each. The order will not affect the selling price to regular customers. Requirement 2.1 [10 points] Assume Nancy Co has enough excess capacity that it can accommodate this order without displacing any of its current sales. What will the change in prots be if Nancy lavas mmgmmmwmmg 1441+th 2:23 PM Quiz: 2022 Midteml Exam accepts the order\"? {Clearly show your calculations.) Requirement 2.2 [10 points] Assume Nancy Co has does not have any excess capacity. What will the change in prots be if Nancy accepts the order? (Clearly show your calculations.)
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