Custom Tooling Solutions has a production capacity of 3,100 units each month, but current production is only 2,600 units. Total manufacturing costs are $62 per unit and marketing costs are $17 per unit. A client offers to purchase 525 units at $78 per unit for the next five months. Should the manager at Custom Tooling Solutions accept the one-time-only special order if only absorption-costing data is available? 

 The current sales were reported as $190,000 at $31.00 per unit. The manager at Quality Manufacturing contacted the manager at Total One Manufacturing about the purchase of 2,200 units at $25 per unit. Current sales would not be affected by the one-time-only special order. What is the change in operating profit at Total One Manufacturing if the one-time-only special order is accepted? 

 

  

 

 

 

 

 

 

 

 

 

Answer rating: 100% (QA)

To determine whether Custom Tooling Solutions should accept the onetimeonly special order we need to ... View the full answer