NUBD Co. budgeted sales of 400,000 calculators at P40 for 2021. Variable manufacturing costs were budgeted at P16 per unit, and fixed manufacturing costs at P10 per unit. A special order offering to buy 40,000 calculators for P23 each was received by NUBD Co. in October 2021. NUBD Co. has sufficient plant capacity to manufacture the additional quantity: however, the production would have to be done on an overtime basis at an estimated additional cost of P3 per calculator. Acceptance of the special order will not affect NUBD's normal sales and no selling expenses would be incurred. What would be the effect on operating profit (loss) if the special order were accepted? * Sample format: 111,111 or (111,111)
NUBD Co. budgeted sales of 400,000 calculators at P40 for 2021. Variable manufacturing costs were budgeted at P16 per unit, and fixed manufacturing costs at P10 per unit. A special order offering to buy 40,000 calculators for P23 each was received by NUBD Co. in October 2021. NUBD Co. has sufficient plant capacity to manufacture the additional quantity: however, the production would have to be done on an overtime basis at an estimated additional cost of P3 per calculator. Acceptance of the special order will not affect NUBD's normal sales and no selling expenses would be incurred. What would be the effect on operating profit (loss) if the special order were accepted? * Sample format: 111,111 or (111,111)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:NUBD Co. budgeted sales of 400,000 calculators at P40 for 2021. Variable manufacturing costs
were budgeted at P16 per unit, and fixed manufacturing costs at P10 per unit. A special order
offering to buy 40,000 calculators for P23 each was received by NUBD Co. in October 2021.
NUBD Co. has sufficient plant capacity to manufacture the additional quantity; however, the
production would have to be done on an overtime basis at an estimated additional cost of P3
per calculator. Acceptance of the special order will not affect NUBD's normal sales and no
selling expenses would be incurred. What would be the effect on operating profit (loss) if the
special order were accepted? *
Sample format: 111,111 or (111,111)
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