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Question 3: (8 points) (B1, C3) GCC Company has been approached by a new customer with an offer to purchase 6,000 units of its product

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Question 3: (8 points) (B1, C3) GCC Company has been approached by a new customer with an offer to purchase 6,000 units of its product KR200 at a price of $11 each. The existing sales would not be affected by this special ord GCC normally produces 40,000 units but plans to produce and sell 30,000 in the coming year. The normal sales price is $18 per unit. Unit cost information is as follows: 54.00 Direct materials Direct labor Variable overhead Fixed overhead Total $2.75 $1.501 $3.25 $11.50 If GCC accepts the order, no fixed manufacturing activities will be affected there is sufficient excess capacity. Instructions: By how much will profit increase or decrease if the order is accepted? (show analysis in detail)

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