Northern Glass Manufacturing has a current production level of 200,000 glass jars per month. Unit costs at this level are:

Direct materials	$0.345
Direct labour	0.400
Variable overhead	0.175
Fixed overhead	0.100
Marketing minus− Fixed	0.100
Marketing/distribution minus− Variable	0.200

Current monthly sales are 180,000 units. Canadian Hardware Ltd. has contacted Northern Glass Manufacturing about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order, and variable marketing/ distributing costs would not be incurred on the special order.

What is Northern Glass' change in profits if the order is accepted?

 

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To calculate the change in profits for Northern Glass Manufacturing if the specia... View the full answer