Sample question

WallaWalla Metal Works received an offer from a big-box retail company to purchase 2,460 metal outdoor tables for $180 each. WallaWalla Metal Works accountants determine that the fol lowing costs apply to the tables: Direct material $103 Direct labor 41 Manufacturing overhead 57 Total $201 Of the $57 of overhead, $11 is variable and $46 relates to xed costs. The $46 ofxed overhead is allocated as $0.92 per direct labor dollar. (a) What will be the real effect on prot if the order is accepted? The prot will v by $