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XYZ Company produces a single product and has the capacity to produce 70,000 units of this product each month. The per unit costs of this
XYZ Company produces a single product and has the capacity to produce 70,000 units of this product each month. The per unit costs of this product when 70,000 units are produced are shown below: direct materials $14.40 direct labor $11.80 variable overhead $ 6.30 fixed overhead $ 9.10 variable selling costs $ 2.50 fixed selling costs $ 7.60 The normal selling price of the product is $64.25 per unit. XYZ Company is currently selling 67,800 units of this product to its regular customers. XYZ Company has just received a special order request for 5,000 units to be shipped at the end of the current month at a discounted price of $48.77 per unit. The variable selling costs would only be $2.10 per unit on the special order. Calculate the amount of the decrease in company profits if TnR4dZ Company accepts the special order. Do not put a minus sign in front of your answer.
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