Business, 30.03.2020 21:00 lethycialee79711
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a oneminus−timeminus−only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs:Direct materials $150Direct labor 90Manufacturing support 115Marketing costs 85
Fixed costs:Manufacturing support 165Marketing costs 55Total costs 660Markup (40%) 264Targeted selling price $924What is the change in operating profits if the one−time−only special order for 1,020 units is accepted for $540 a unit by Crandle?A.$102,000 increase in operating profitsB.$101,340 increase in operating profitsC.$102,000 decrease in operating profitsD.$101,340 decrease in operating profits
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