Business, 17.04.2020 01:31 naenae662

Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units:

Direct materials: $ 5
Direct labor: $10
Variable overhead: $7
Fixed overhead: $9
The company has the capacity to produce 50,000 units.
The product regularly sells for $50.
A wholesaler has offered to pay $43 per unit for 3,000 units.

If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be a:

Answers: 3

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Rexeleg Company manufactures a product with the following costs per unit at the expected production...