Question: Are these correct? + need help on part C Capitol has received a special order for 2,040 units of its product at a special price
Are these correct? + need help on part C
Capitol has received a special order for 2,040 units of its product at a special price of $154. The product normally sells for $204 and has the following manufacturing costs:


Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per unit $ 54 34 24 Unit cost S 156 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Capitol accepts the order, what effect will the order have on the company's short-term profit? ncrease in Profit $85,680 b. What minimum price should Capitol charge to achieve a $44,000 incremental profit? (Round your answer to 2 decimal places.) Minimum Price 133.57
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
