Question: MightyKobenz budgeted sales of 500,000 units @ Php100 per unit for the year. Budgeted unit manufacturing costs were Php40 variable and Php25 fixed. A special

MightyKobenz budgeted sales of 500,000 units @ Php100 per unit for the year. Budgeted unit manufacturing costs were Php40 variable and Php25 fixed. A special order was received in July for 50,000 units @ Php58 each, but Php8 per unit additional overtime cost will be incurred. AS MANAGEMENT C0NSULTANT, WHAT IS Y0UR ADVICE REGARDING WHETHER TO ACCEPT OR N0T THE SPECIAL ORDER UNDER THE F0LL0WING SITUATI0NS:

a. regular sales will not be affected as there is sufficient plant capacity, and

b. regular sales will be reduced by 20,000 units.

show computations and formula. (check the zeros)

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