Question
Proxy has received a special order for 810 units of its product at a special price of $249. The product currently sells 18,600 units for
| Proxy has received a special order for 810 units of its product at a special price of $249. The product currently sells 18,600 units for $309 and has the following manufacturing costs: |
| Per unit | |||
| Direct materials | $ | 85 | |
| Direct labor | 62 | ||
| Variable manufacturing overhead | 75 | ||
| Fixed manufacturing overhead | 41 | ||
| Unit cost | 263 | ||
| Assume that Proxy has sufficient capacity to fill the order without harming normal production and sales. |
| a. | If Proxy accepts the order, what effect will the order have on the company |
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The Outsourcing Dilemma Whats Best For Internal Auditing
Authors: Larry E. Rittenberg, Institute Of Internal Auditors Research Foundation, Lee A. Campbell
1st Edition
0894133845, 978-0894133848
