Bergeron Corp. produces high-end pens (the pens include a hand-carved wooden handle). They currently produce 20,000...

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Bergeron Corp. produces high-end pens (the pens include a hand-carved wooden handle). They currently produce 20,000 pens per week, although they have the capacity to produce 23,000 pens per week. Manufacturing costs per unit are as follows: Direct Materials $1.05 Direct Labor $3.24 Variable MOH Fixed MOH $0.85 $2.15 The pens sell for $11.79 per unit. There are no other fixed or variable costs associated with production and sale of these pens. A customer has asked for a custom order of 6,000 pens per week at a price of $8.13 per pen. The special order requires a custom logo, which would add a new fixed cost of $551 per week. How much would operating profit change if Bergeron accepts the special order? Indicate an increase in profit as a positive number, and a decrease in profit as a negative number. Bergeron Corp. produces high-end pens (the pens include a hand-carved wooden handle). They currently produce 20,000 pens per week, although they have the capacity to produce 23,000 pens per week. Manufacturing costs per unit are as follows: Direct Materials $1.05 Direct Labor $3.24 Variable MOH Fixed MOH $0.85 $2.15 The pens sell for $11.79 per unit. There are no other fixed or variable costs associated with production and sale of these pens. A customer has asked for a custom order of 6,000 pens per week at a price of $8.13 per pen. The special order requires a custom logo, which would add a new fixed cost of $551 per week. How much would operating profit change if Bergeron accepts the special order? Indicate an increase in profit as a positive number, and a decrease in profit as a negative number.

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To calculate the change in operating profit if Bergeron accepts the special order we need to compare ... View the full answer