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XYZ Inc. has received a request for a special order of 5,500 units of Item POR for $27.40 each. Item POR's cost per unit is
XYZ Inc. has received a request for a special order of 5,500 units of Item POR for $27.40 each. Item POR's cost per unit is $2715: DM DL Var. manuf. O/H Fixed manuf. / Product cost per unit $ 2.80 8.10 7.20 9.05 $27.15 The order would have no effect on total fixed manufacturing overhead costs. The customer would like changes made to Item POR that would increase the variable costs by $3,80 per unit and that would require spending $27,000 in custom tools that would have no salvage value. This order wouldn't Impact regular sales. The company han enough excess capacity to make the order. The advantage (disadvantage) for XYZ Inc. as a result of doing the order should be Multiple Choice 40.625 Multiple Choice $(46,525) O $3,250 O $1,375 $(82,225)
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