Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at...

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Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct Materials Direct labor Variable Overhead Fixed Overhead Marketing - Fixed Marketing/distributions - variable $0.29 $0.45 $0.16 $0.22 $0.21 $0.44 Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1600 units at $2.30 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted? (how much will it increase or decrease by)? Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at this level are: Direct Materials Direct labor Variable Overhead Fixed Overhead Marketing - Fixed Marketing/distributions - variable $0.29 $0.45 $0.16 $0.22 $0.21 $0.44 Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1600 units at $2.30 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted? (how much will it increase or decrease by)?

Answer rating: 100% (QA)

To determine the change in operating profits if the special order is accepted we need to calculate t... View the full answer