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Please determine the effect on the company's total net operating income of accepting the special order. Wehrs Corporation has recelved a request for a special
Please determine the effect on the company's total net operating income of accepting the special order.
Wehrs Corporation has recelved a request for a special order of 9,500 units of product K19 for $47.00 each. The normal selling price of this product is $5210 each but the units would need to be modified slightly for the customet. The normal unit product cost of product K19 is computed as follows: Direct laber is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the variable costs by $6.70 per unit and that would reouite s one-time investment of $46500 in special molds that would hme no salvege value This spedal order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order
Please determine the effect on the company's total net operating income of accepting the special order.
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