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Questions 43 44 Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to
Questions 43 44 Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity. The following per unit data apply for sales to regular customers: 40 20 35 15 Variable costs: Direct materials Direct labor Manufacturing support Marketing costs Fixed costs: Manufacturing support Marketing costs Total costs Markup (50%) Targeted selling price 45 15 170 85 255 44. What is the change in operating profits if the one-time-only special order for 1.000 units is accepted for 150 a unit by Welch? A) 40,000 decrease in operating profits B) 40,000 increase in operating profits C) 55,000 decrease in operating profits D) 55,000 increase in operating profits
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