Question 1

The following cost information pertained to the Broome Co.

	Unit Costs
Variable product costs
Direct materials	240
Direct labor	150
Factory overhead	90
Fixed factory overhead
Depreciation	50
Rent	60
Other	25
Total product costs	615
Other variable costs - marketing	20
Other fixed costs	45

Assume that the Broome Co. was evaluating whether or not to accept a special order for ten units of its product at $550 per unit. There is no alternative use for the capacity.The net benefit (cost) of accepting the special order is?

Question 2

The following cost information pertained to the Broome Co.

	Unit Costs
Variable product costs
Direct materials	240
Direct labor	150
Factory overhead	90
Fixed factory overhead
Depreciation	50
Rent	60
Other	25
Total product costs	615
Other variable costs - marketing	20
Other fixed costs	45

Assume that the Broome Co. was evaluating whether or not to accept a special order for ten units of its product at $550 per unit. There is no alternative use for the capacity. The total costs of accepting the special order are?