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Calculate increase in company profits if b company accepts

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Reference no: EM131766981

B comp any produces a product with a $30 per-unit variable cost and an $80 per-unit selling price. Fixed manufacturing overhead costs are $100,000 per year. The company has received a special order request to sell an additional 8,000 units. The special order units will incur an additional $2 per unit variable shipping cost that is not associated with regular sales.

Assume B company has the capacity to produce 80,000 units and they are currently selling 75,000 units to regular customers.

Calculate the increase in company profits if B company accepts the special order at a selling price of $70 per unit

Reference no: EM131766981

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