Homework Answers
| Current scenario | with special order | change | |
| Sales | 2000000 | 2160000 | |
| Direct Material | 800000 | 900000 | |
| Direct Labour | 400000 | 450000 | |
| Variable MOH | 200000 | 225000 | |
| Fixed MOH | 240000 | 240000 | |
| Profit | 360000 | 345000 | -15000 |
Decrease in operating income of $15000.
The lowest price acceptable for the firm to fill the special order and to maintain their current level of profitability-
| Per unit cost | Total cost for 32000 units | |
| Direct Material | 20.00 | 640000 |
| Direct Labour | 10.00 | 320000 |
| Variable MOH | 5.00 | 160000 |
| Fixed MOH | - | - |
| Total Cost | 35.00 | 1120000 |
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