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plase help and explain thoroughly. thank you! 4. Special Order. Polaski Company manufactures and sells a single product called a FAR. Operating at capacity, the
plase help and explain thoroughly. thank you!
4. Special Order. Polaski Company manufactures and sells a single product called a FAR. Operating at capacity, the company can produce and sell 30,000 FARs per year. Cost associated with this level of sales and production are as follows: $15 Direct materials Direct labor $8 Variable manufacturing overhead $3 Fixed manufacturing overhead $9 Variable selling and administrative expense $4 Fixed selling and administrative expense $6 The normal selling price is $50 per unit. The company currently has enough orders to manufacture 25,000 FARs. An order has been received from a domestic company for 4,000 units at a special price of $40.00 per unit. This order would not affect regular sales. If this order is accepted, by how much will annual profits be increased or decreased? Answer: Incremental profit will circle one) INCREASE or DECREASE by $ Step by Step Solution
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