How much profit will the deal generate?

DM is 1.20

DL is 0.70

Variable MOH is 0.30

Fixed MOH is 1.65

Variable SG&A is 0.25

Fixed SG&A is 0.80

 

Item is normally sold at $11.00 each. special order requests 50 items for a total of $205

There is enough production capacity to take on the special order.

Answer rating: 100% (QA)

First lets calculate the total variable costs Variable costs per unit Direct materials DM Direct lab... View the full answer