Special Order Z-Tech produces a single product. The cost of producing and selling a single unit of this product at the company?s current activity level of 8,000 units per month is as follows: Cost Per Unit Direct materials . . . . . . . . . . . . . . $2.50 Direct labor. . . . . . . . . . . . . . . . . . $3.00 Variable manufacturing overhead $0.50 Fixed manufacturing overhead. . $4.25 Variable selling & administrative $1.50 Fixed selling & administrative. . . $2.00 The normal selling price is $15 per unit. The company?s capacity is 10,000 units per month. An order has been received from an overseas source for 2,000 units at t price of $12 per unit. This would would not affect regular sales. Required: If the order is accepted, by how much will monthly profits be increased or decreased? Show your computations. (The order would not change the company?s total fixed costs.)

Special Order Z-Tech produces a single product. The cost of producing and selling a single unit of this product at the company's current activity level of 8,000 units per month is as follows: Cost Per Unit Direct materials . . . . . . . . . . . . . .$2.50 Direct labor. . . . . . . . . . . . . . . . . .$3.00 Variable manufacturing overhead$0.50 Fixed manufacturing overhead. . $4.25 Variable selling & administrative $1.50 Fixed selling & administrative. . . $2.00 The normal selling price is $15 per unit. The company's capacity is 10,000 units per month. An order has been received from an overseas source for 2,000 units at t price of $12 per unit. This would would not affect regular sales. Required: If the order is accepted, by how much will monthly profits be increased or decreased? Show your computations. (The order would not change the company's total fixed costs.)