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Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at $50 a unit. The present cost structure, on a
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at $50 a unit. The present cost structure, on a per unit basis, is: Direct material $20 Direct labour Variable overhead Fixed overhead 10 An order for 7,000 units has been received from a Japanese company at a price of $45 per unit. The order size cannot be reduced. If the order is accepted, profit will: A. Increase by $63,000 B. Increase by $35,000 C. Not change D. Decrease by $35,000
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