Question
The following information relates to a product produced by Creamer Company: Direct materials Direct labor Variable overhead Fixed overhead $22.51 17.75 32.84 22.82 Fixed
The following information relates to a product produced by Creamer Company: Direct materials Direct labor Variable overhead Fixed overhead $22.51 17.75 32.84 22.82 Fixed selling costs are $447,152 per year. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $200 each. A customer has offered to buy 60,000 units for $120 each. If the firm produces the special order, what is the effect on income? Report gains as a positive number. Report losses as a negative number (with a minus sign).
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