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Tarazzz Company manufactures computers.The following cost information for the manufacture of one computer has been compiled. Direct materials$48 Direct labor64 Variable manufacturing overhead40 *Fixed manufacturing
Tarazzz Company manufactures computers.The following cost information for the manufacture of one computer has been compiled.
Direct materials$48
Direct labor64
Variable manufacturing overhead40
*Fixed manufacturing overhead48
Total cost per unit$200
*The $48 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed.
Tarazzz has received a special order for 1,000 computers at a price of $150 per unit. By how much will overall companynet incomechange if the order isaccepted?
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