A customer has requested that Astral Manufacturing fill a special order for 3,200 units of product M45 for $40 per unit. The product would be modified slightly for the special order, and product M45's normal unit product cost is $24.20: Cost Component Amount Direct materials $6.00 Direct labor $6.50 Variable manufacturing overhead $3.20 Fixed manufacturing overhead $8.50 Unit product cost $24.20 Direct labor is a variable cost. The modifications for the special order would increase variable costs by $2.00 per unit and require an investment of $20,000 in special molds with no salvage value. The special order would not affect the company's total fixed manufacturing overhead costs, other sales, or production capacity. If the special order is accepted, what would be the impact on the company's overall net operating income? a. $19,600 b. $22,400 c. $45,600 d. $51,360

A customer has requested that Astral Manufacturing fill a special order for 3,200 units of product M45 for $40 per unit. The product would be modified slightly for the special order, and product M45's normal unit product cost is $24.20: Cost Component Amount Direct materials $6.00 Direct labor $6.50 Variable manufacturing overhead $3.20 Fixed manufacturing overhead $8.50 Unit product cost $24.20 Direct labor is a variable cost. The modifications for the special order would increase variable costs by $2.00 per unit and require an investment of $20,000 in special molds with no salvage value. The special order would not affect the company's total fixed manufacturing overhead costs, other sales, or production capacity. If the special order is accepted, what would be the impact on the company's overall net operating income? a. $19,600 b. $22,400 c. $45,600 d. $51,360

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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