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please provide the answers Question 26 Wehrs Corporation has received a request for a special order of 9,100 units of product K19 for $46.00 each.
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Question 26 Wehrs Corporation has received a request for a special order of 9,100 units of product K19 for $46.00 each. The normal selling price of this product is $51.10 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $16.80 6.10 3.30 6.20 $32.40 Direct labor 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 $5.70 per unit and that would require a one-time investment of $45,500 in special molds that would have no salvage value. The company has ample spare capacity for producing the special order. Required: record your answer on your worksheet. a) Determine the effect on the company's total net operating income of accepting the special order. b) What other qualitative issues should the company consider before accepting this orderStep by Step Solution
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