has current production level of 200,000 glass jars per month. unit costs of the

Question

has current production level of 200,000 glass jars per month. unit costs of the level: direct material: $.345 direct labour: .400 variable overhead: .175 fixed overhead .100 marketing - fixed .100 marketing/distribution - variable .200 currently monthly sales are 180,000 units abc ltd has contactr=ed company about producing 15,000 units at 1,00 each. current sales would not be affected by the special order and variable marketing distribution costs would not be incurred on the special order. what is northern glass change in profits if the order is accepted? 4,800 increase 4,800 decrease 1,800 decrease 300 decrease 1,200 increase

Explanation / Answer

manufacturing cost =(0.345+0.4+0.175) 0.92 special order incremental profit = (1-0.92)15000 1200 so option e is correct

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