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The costs, revenue, and net operating income associated with the Scrub Daddy are given below: Selling Price per Unit $30 Variable Cost per Unit Direct
The costs, revenue, and net operating income associated with the Scrub Daddy are given below:
Selling Price per Unit | $30 |
Variable Cost per Unit | |
Direct Material per Unit | $12 |
Direct Labor per Unit | $3 |
Variable MOH per Unit | $3 |
Shark Lori Greiner has an order for 4 units of Scrub Daddy sponges. The orderer only wants to pay $29 per unit.
What is the advantage/disadvantage per unit of accepting the offer assuming Scrub Daddy has sufficient idle capacity?
Round your answer to the nearest dollar.
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