Question
Please show the me solution of this short question! thanks ----------------------- During the year, the company is approached by a potential customer to fulfill a
Please show the me solution of this short question! thanks
-----------------------
During the year, the company is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs:
Direct materials$130
Direct labour60
Manufacturing support105
Other
costs95
Fixed costs:
Manufacturing support175
Marketing costs65
Total
costs630
Markup (50%)315
Targeted selling price$945
What is the change in operating profits if the one-time-only special order for 1,030 units is accepted for $550 a unit by the company?
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