Business, 29.04.2021 17:50 aperson05

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 K9 that would increase the variable costs by $5.10 per unit and that would require a one-time investment of $44,900 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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Direct labor is a variable cost. The special order would have no effect on the company's total fixed...

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