Question: SSAY. Write your answer in the space provided or on a separate sheet of paper. 31) Wehrs Corporation has corporation has received a request for
SSAY. Write your answer in the space provided or on a separate sheet of paper. 31) Wehrs Corporation has corporation has received a request for a special order of 6,000 units ol $32.30 each. The normal selling price of this product is modified slightly for the customer. The normal unit p follows: for a special order of 6,000 units of product K19 for ning price of this product is $33.45 each, but the units would need to be e customer. The normal unit product cost of product K19 is computed as Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 15.00 3.80 1.40 2.10 $ 22.30 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 some modifications made to product ki that would increase the variable costs by $4.90 per unit and that would require a one-time comment of $23,000 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. Required: Determine the effect on the company's total net operating income of accepting the special order
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