Prep Question

Golden produces a hard disk drive that sells for $173 per unit. The cost of producing 25,000 drives in the prior year was: Direct material $ 725,000 Direct la bor 450,000 Variable overhead 225,000 Fixed overhead 1,500,000 Total cost $ 2,900,000 At the start of the current year, the company received an order for 3,240 drives from a computer company in China. Management of Golden has mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's rst international order. On the other hand, the company in China is willing to pay only $137 per unit. What will be the effect on prot of accepting the order? (Enter decrease in prot using eithera negative Sign preceding the number 3.3. -45 or parentheses eg. (45).) Protwill v' by$l