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The MNK Company has gathered the following information for a unit of its most popular product: Selling price $ 32.10 per unit Direct materials $
The MNK Company has gathered the following information for a unit of its most popular product: | |||||||||
Selling price | $ 32.10 | per unit | |||||||
Direct materials | $ 4.56 | per unit | |||||||
Direct labor | $ 1.23 | per unit | |||||||
Fixed Overhead | $12,543.21 | total | |||||||
Variable Overhead | $ 2.34 | per unit | |||||||
The above cost information is based on 4,321 units. A foreign distributor has offered to buy 1,234 | |||||||||
units at a price of $12.34 per unit. This special order would not disturb regular sales nor increase | |||||||||
production above 100% capacity. | |||||||||
What will be the total company profit if the special order is accepted. |
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