Question
Your Company makes and sells electric fans. Each fan regularly sells for $250. Your Company is now selling 120,000 fans through regular channels each period.
Your Company makes and sells electric fans. Each fan regularly sells for $250. Your Company is now selling 120,000 fans through regular channels each period. The following cost data per fan is based on a full capacity of 150,000 fans produced each period.
| Direct materials................................................................. | $45 |
| Direct labor....................................................................... | $20 |
| Manufacturing overhead (45% variable and 55% unavoidable fixed)...................... | $50 |
A special order has been received for a sale of 18,000 fans to an overseas customer at $125 per fan. The only selling costs that would be incurred on this order would be $8 per fan for shipping. What is increase in income if the special order is accepted?
Group of answer choices
$585,000
$441,000
$531,000
$180,000
$675,000
please solve will like
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