Required: a. What impact would accepting this special order have on operating profit? b. Should RTD accept the order? Complete this question by entering your answers in the tabs below. Required A Required B Should RTD accept the order? Should RTD accept the order? < Required A Required B >
Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the
| Amount | Per Unit | |
|---|---|---|
| Sales revenue | $ 1,170,000 | $ 26.00 |
| Costs of fitting produced | 900,000 | 20.00 |
| Gross profit | $ 270,000 | $ 6.00 |
| Administrative costs | 207,000 | 4.60 |
| Operating profit | $ 63,000 | $ 1.40 |
Fixed costs included in this income statement are $292,500 for
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