1. SloGrowth has idle capacity. They received a special order for 2,000 units priced at $6 per unit. Currently production and sales are budgeted for 20,000 units without special order consideration. Budget information for the year is presented below:

Sales	160.000 $
cost of goods sold	120.000 $
gross margin	40.000 $

Cost of goods sold includes $20,000 in fixed production costs. 

Determine the impact on profit if the special order is accepted.

2. Assuming zero profit margin, if direct labor is $30 per hour and overhead is 60 percent of direct labor, what is the pay rate for engineers?

3. Suppose a technician who assembles Honda cars makes $16 an hour. The technician works 48 hours a week instead of the scheduled 40 hours. The overtime pay scale is one and a half hours, or 150 percent of regular pay.

What would be the Overtime premium amount?

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1 The impact on profit if the special order is accepted is an increase in profit of 8000 Calculation ... View the full answer