Question: Please help me find this answer A customer has requested that Lewelling Corporation fill a special order for 1,900 units of product 847 for $41
Please help me find this answer

A customer has requested that Lewelling Corporation fill a special order for 1,900 units of product 847 for $41 a unit. While the product would be modied slightly for the special order, product 547's normal unit product cost is $16.00: Direct materials $ 4.30 Direct labor 4.00 variable manufacturing overhead 1.40 Fixed manufacturing overhead 6.30 Unit product cost $16.00 I Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product 547 that would increase the variable costs by $2.20 per unit and that would require an investment of $11,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
