Question
*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
*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 enough excess capacity to fill the order without affect other sales. The following per unit data apply for sales to regular customers:
Variable costs per unit
Direct materials
40
Direct labor
19
Manufacturing Overhead
39
Packaging costs
13
Fixed costs allocated per unit
Manufacturing Overhead
45
Packaging costs
15
The normal selling price is 255 per unit,howwill profit changeif they take an order for 5000 units at a price of $175 per unit?
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