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Tullus Corporation has received a request for a special order of 9,300 units of product C64 for $46.20 each. The nomal selling price of this
Tullus Corporation has received a request for a special order of 9,300 units of product C64 for $46.20 each. The nomal selling price of this product is $51.30 each, but the units would need to be moditled slightty for the customer. The normal unit product cost of product C64 is computed as follows Direct materials Direct labor 17 00 6 30 3 50 6 40 Unilt product cost Direct labor is a variable cost The special order would have no efflect on the company's total Sxed manufacturing overhead costs. The customer would ike some moditications made to product C64 would increase the variable costs by $5 90 per unit and that would require a one-ime investment of $45,700 in special molds that would have no salvage value. This special order would have no et on the company's other sales The company has ample spare capacity for producing the special order Required Determine the effect on the company's total net operating income of accepting the special order
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