Question: can someone help me with this accounting problem. first box says increase or decrease The normal unit product cost for a given product is as
The normal unit product cost for a given product is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $18.40 7.70 4.90 7.89 $38.80 The company has received for a special order of 9.700 units of the product for $47.60 each. It ususally sells for $52.70 per unit. The special order will require some modifications to meet the customer's demands. Direct labor is a variable cost. The company's total fixed manufacturing overhead costs would not be impacted by the special order. Due to requested modifications, the variable cost will increase by $7.30 per unit. Additionally, a one-time investment of $47100 in a piece of equipment with no salvage value would also be required. Assume the special order would not impact regular sales and that the company has plenty of excess capacity available to complete the order. If the company decides to accept the special order, what is the effect on total net operating income
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