Question
Nina Company has provided the following information: Direct material $35.00 Direct labor $16.00 Variable manufacturing overhead $14.00 Fixed manufacturing overhead $12.00 Variable administrative expense $8.00
Nina Company has provided the following information: Direct material $35.00 Direct labor $16.00 Variable manufacturing overhead $14.00 Fixed manufacturing overhead $12.00 Variable administrative expense $8.00 Fixed administrative expense $5.00 Nina normally produces 15,000 units and sells these units at $150 per unit. A national discount box store has contacted the company about ordering 3,500 units that would be manufactured in a slightly different way and would save the company $6.00 per unit in direct materials. Nina has excess capacity and this order would not affect normal production The special order would not change Nina's fixed costs. The special order would have a unit price of $120. The special order would increase (decrease) Nina's net operating income by _______. You must format you answer as follows: $x,xxx (for an increase in net operating income) $(x,xxx) (for a decrease in net operating income)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started