The MNK Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor $8.20 $4.10 Overhead (40% variable) $6.10 Cost of manufacture Desired markup (50%) Target selling price $18.40 $9.20 $27.60 The above cost information is based on 4,000 units. A foreign distributor has offered to buy 1,000 units at a price of $22.60 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $2.10 per unit for the special order. If the special order is accepted, MNK's operating profits will increase by: A. $4,200 B. $2,100 C. $3,360 D. $5,760 E. $7,860

The MNK Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor $8.20 $4.10 Overhead (40% variable) $6.10 Cost of manufacture Desired markup (50%) Target selling price $18.40 $9.20 $27.60 The above cost information is based on 4,000 units. A foreign distributor has offered to buy 1,000 units at a price of $22.60 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $2.10 per unit for the special order. If the special order is accepted, MNK's operating profits will increase by: A. $4,200 B. $2,100 C. $3,360 D. $5,760 E. $7,860

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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