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Toffaha Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.26 Direct labor 0.40
Toffaha Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.26 Direct labor 0.40 Variable overhead 0.16 Fixed overhead 0.21 0.25 Marketing - fixed Marketing/distribution - variable 0.42 Current monthly sales are 18,000 units. Jax Company has contacted Toffaha about purchasing 1,550 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Toffaha Company's change in operating profits if the special order is accepted
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