Franklin Company manufactures a personal computer designed for use in schools and markets it under its own label. Franklin has the capacity to produce 44,000 units a year but is currently producing and selling only 20,000 units a year. The computer’s normal selling price is $1,650 per unit with no volume discounts.
Franklin Company manufactures a personal computer designed for use in schools and markets it under its own label. Franklin has the capacity to produce 44,000 units a year but is currently producing and selling only 20,000 units a year. The computer’s normal selling price is $1,650 per unit with no volume discounts. The unit-level costs of the computer’s production are $520 for direct materials, $220 for direct labor, and $140 for indirect unit-level
Required
Calculate the contribution to profit from the special order.
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