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The owens company budgeted sales of 20,000 pronters at $90 per unit last year. Variable manufacturint costs were budgeted at $46 per unit. A special
The owens company budgeted sales of 20,000 pronters at $90 per unit last year. Variable manufacturint costs were budgeted at $46 per unit. A special order for 1000 printers at $72 each was received by owens in april. There is enough plant capacity to meet these additional units without incurring any additional fixed manufacturing costs; however, the production would have to be done on an overtime basis at an estimated additional cost of$5 per printer. Acceptance of the special order would not affect Owens normal sales and no selling expenses would be incurred. What would be the increase to net operating income if the special order were accepted?
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