Special order pricing Marston Manufacturing has an annual capacity of 85,000 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $120 per unit, cariable costs are $90 per unit, and total fixed expenses are $2,000,000. an out of state distributor has offered to buy 12,000 units at $105 per unit. Marston's cost structure should not change as the result of this special order. REQUIRED By how much will Marstonsincome change if the company accepts this order?

Special order pricing Marston Manufacturing has an annual capacity of 85,000 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $120 per unit, cariable costs are $90 per unit, and total fixed expenses are $2,000,000. an out of state distributor has offered to buy 12,000 units at $105 per unit. Marston's cost structure should not change as the result of this special order. REQUIRED By how much will Marstonsincome change if the company accepts this order?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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