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Rami Company has a current production level of 30,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40
Rami Company has a current production level of 30,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Variable marketing 0.40 Fixed marketing 0.20 Current monthly sales are 28,000 units. Jaber Company has contacted Rami Company about purchasing 2,000 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. What is Rami Company's change in operating profits if the special order is accepted?
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