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The Minton Company has gathered the following information for a unit of its most popular product: $ 7 Direct materials Direct labor Overhead (50% variable)
The Minton Company has gathered the following information for a unit of its most popular product: $ 7 Direct materials Direct labor Overhead (50% variable) Cost to manufacture Desired markup (50%) Target selling price 6 16 8 $24 The above cost information is based on 5,900 units. A foreign distributor has offered to buy 2,900 units at a price of $19 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by: $%7,250 $8,700 O $14,500 O $5,800
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