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Newtown sunglasses sell for about $154 per pair. Newtown has enough idle capacity to except a one time special order from Water Shades for 17,000
Newtown sunglasses sell for about $154 per pair. Newtown has enough idle capacity to except a one time special order from Water Shades for 17,000 pairs of sunglasses at $80 per pair. Newtown will not incur any variable selling expenses for the order. Direct materials costs are $39 direct labor is $15 variable manufacturing overhead is $6, variable selling expenses are $3, fixed manufacturing overhead is $20 for a total of $83. $2,050,000 total fixed manufacturing overhead divided by 102,500 Pairs of sunglasses
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