The Mixed Products Company sells one of its products for $180 per unit. The Company incurs the following costs per unit: Direct materials $40.00 Direct labor 18.00 Variable manufacturing overhead 7.50...


The Mixed Products Company sells one of its products for $180 per unit.  The Company incurs the following costs per unit:


              Direct materials                                          $40.00


              Direct labor                                                    18.00


              Variable manufacturing overhead                 7.50


              Variable selling expenses                                 4.00


              Fixed manufacturing overhead                     25.00*





* $2,500,000 total fixed manufacturing overhead/ 100,000


The company has enough idle capacity to accept a one-time only special order for 20,000 units of the product for $90 per unit and will not incur any additional selling expenses if it accepts the order.



Required: Show with calculations how accepting the one-time order will affect the company’s operating income.




Jun 11, 2022
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