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The following data relate to Webster Manufacturing Pricing Product Anticipated sales_______________________________50,000 units Normal Sales price/units_________________________$10 Variable Manufacturing cost/unit-------------------------------$3 Variable selling and administrative cost unit__________$1 Fixed
The following data relate to Webster Manufacturing Pricing Product Anticipated sales_______________________________50,000 units Normal Sales price/units_________________________$10 Variable Manufacturing cost/unit-------------------------------$3 Variable selling and administrative cost unit__________$1 Fixed manufacturing cost_________________________$75,000 ($1.50/units) Fixed selling and administrative cost________________$100,000 ($2.00/unit) Total cost/unit (full absorption) ____________________$7.50 Webster has the opportunity to take a one-time special order from a customer who wants to buy 10,000 units, but is only willing to pay $7.00 per unit. The special order will not affect Websters anticipated sales to other customers or the company fixed cost. Should Webster accept the special order? Yes or no. Calculate income from operations both with and without the special order
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