Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Murphy's Paw produces and sells 1,000 units of a single product per year (with excess capacity of 400 units). The cost of producing and selling a single unit is:
Direct materials | $11 |
Direct labor | 8 |
Allocated variable |
1 |
Allocated fixed overhead | 1 |
The normal selling price is $50.00 per unit. An order has been received from an overseas company for 100 units at the special price of $40.00 per unit. What would be the additional operating income (or loss) of taking on this special order?
Use a - sign for a loss.
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