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Excellent manufacturers inc. has a current production level of 20,000 units per month. unit costs at this level are:
direct materials $ 0.30
direct labor 0.41
variable overhead 0.19
fixed overhead 0.20
marketing minus fixed 0.20
marketing/distribution minus variable 0.44
current monthly sales are 18,000 units.
jax company has contacted excellent about purchasing 1,530 units at $ 2.40 each. current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not be incurred on the special order. what is ratzlaff company's change in operating profits if the special order is accepted?
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