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Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells tor $3.30 The cost of each
Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells tor $3.30 The cost of each unit follows: Materials Labor Variable overhead Fixed overhead ($14,475 per month, 19,300 units per month) 0.80 0.80 0.20 0.75 Total costs per unit $2.55 One of Rutkey's regular customers asked the company to fill a special order of 400 units at a selling price of $2.55 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concerned about selling at a price below the $2.55 cost per unit and has asked for your advice Required a. Prepare a schedule to show the impact of providing the special order of 400 units on Rutkey's profits in addition to the regular production and sales of 19,300 units per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "None" if there is no effect.)
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