Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct...

 

Transcribed Image Text:

Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $16,300 Direct labor incurred $189,000 Variable manufacturing overhead $124,000 Variable selling and administrative $72,000 expenses Fixed manufacturing overhead $65,000 Fixed selling and administrative $12,000 expenses Units produced and sold 23,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $5500 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $16,300 Direct labor incurred $189,000 Variable manufacturing overhead $124,000 Variable selling and administrative $72,000 expenses Fixed manufacturing overhead $65,000 Fixed selling and administrative $12,000 expenses Units produced and sold 23,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $5500 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)