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SPECIAL ORDER Lee company makes some product. It produces 1000 units. Below is listed the total cost of the product Direct material Direct Labor Variable
SPECIAL ORDER Lee company makes some product. It produces 1000 units. Below is listed the total cost of the product Direct material Direct Labor Variable Overhead Fixed cost Total cost $ 4000.00 2000.00 6000.00 2500.00 14500.00 Fixed selling costs are $120000 and variable selling costs are $2.50 per unit. The production capacity is 2000 units. The product normally sells for $25.00. A customer has offered to buy 500 units for $20.00. Required 1. Find incremental cost per unit associated with the special order. 2. Calculate the total cost associated with the special order. 3. If the company produces the special order, what will be the effect on the companies income
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