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The Young Company has gathered the following information for a unit of its most popular product Direct materials Drect labor $13 4 15 Overhead
The Young Company has gathered the following information for a unit of its most popular product Direct materials Drect labor $13 4 15 Overhead (40% variable) Cost to manufacture Desired markup (50% Target selling pice 32 16 140 The above cost information is based on 10100 units. A distributor has offered to buy 2.500 units at a price of $34 per unit. This special order would not disturb regular ssies. Special packaging and other selling expenses would be an additional 50.40 per unit for the special order if the special order is accepted. Young's operating profits wit increase by $4,000 15,000 O $26.500 $2500
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