Question
The following costs per unit relate to the lawn mower division of a mowing company and was based upon production of 1,000 units with capacity
The following costs per unit relate to the lawn mower division of a mowing company and was based upon production of 1,000 units with capacity is 1,200 units: Variable Product Costs Direct Materials $100 Direct Labor $90 Variable Factory Overhead $50 Fixed Factory Overhead Depreciation $25 Property Tax $8 Factory Guards $15 General and Administrative Expenses Variable Selling Expense $80 Fixed Administrative Expense $22 Total Cost $390 A lawn mower sells for $500. A salesperson has brought in a special order for 300 lawn mowers at $450 each. How much will profits increase if the special order is accepted and the company cannot exceed capacity? In order to meet the special order of 300 lawn mowers, the sales to current customers should be ______ from ____ lawn mowers by ___ units so that the total production will not exceed production capacity of ____ units.
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