Alpha has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct...

 

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Alpha has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials Direct labor Variable overhead Fixed overhead Marketing-fixed Marketing/distribution-variable $4.00 6.00 3.00 1.00 7.00 3.60 Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Alpha about purchasing 2,000 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Alpha's change in operating profits if the one-time-only special order is accepted? Delta produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $ 90,000 130,000 60,000 140,000 $420,000 Of the fixed factory overhead costs, $60,000 is avoidable. Alpha has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials Direct labor Variable overhead Fixed overhead Marketing-fixed Marketing/distribution-variable $4.00 6.00 3.00 1.00 7.00 3.60 Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Alpha about purchasing 2,000 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Alpha's change in operating profits if the one-time-only special order is accepted? Delta produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $ 90,000 130,000 60,000 140,000 $420,000 Of the fixed factory overhead costs, $60,000 is avoidable.