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Trans-Circuits, Inc. manufactures circuit boards for personal computers. The normal selling price is $42 per board. The cost per circuit board is $8 Direct material
Trans-Circuits, Inc. manufactures circuit boards for personal computers. The normal selling price is $42 per board. The cost per circuit board is $8 Direct material Direct labor Variable overhead Fixed overhead (based on capacity of 80,000 units) Total $6 $7 $25 The company has received a special order from a foreign buyer for 12,000 circuit boards. This order will not compete with existing sales. The company has sufficient excess capacity to manufacture the boards. Additional freight costs of $4 per board will be incurred. The selling price for the special order is $23 per unit. a. If the special order is accepted, how much would income increase or decrease? SHOW WORK
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