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Question 6. The Drosselmeier Corporation makes Christmas nutcrackers and has an annual capacity of 2,400 units. Suppose its operating results for the year are: Production
Question 6. The Drosselmeier Corporation makes Christmas nutcrackers and has an annual capacity of 2,400 units. Suppose its operating results for the year are: Production and sales of 2,000 units, totalsales Manufacturing costs Variable costs per unit Selling and Administrative Expenses 180,000 60,000 26 Fixed (total) Variable (per unit) 30,000 10 What it total operating profit at the current production levels? b) How would company's operating profit will be affected ifthe company assumes a special order for 300 units at a selling price of 40 each, assuming no effect on regular sales at regular prices
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