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Business, 23.03.2020 19:31 liyahlanderson2861

Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $ 162 comma 000 Direct labor incurred $ 188 comma 000 Variable manufacturing overhead $ 121 comma 000 Variable selling and administrative expenses $ 74 comma 000 Fixed manufacturing overhead $65,000 Fixed selling and administrative expenses $12,000 Units produced and sold 22 comma 000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1 comma 400 units at a sale price of $ 47 per product? The 1 comma 400 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)

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