The cost of goods sold includes 2575000 of fixed

Reference no: EM13587387

The cost of goods sold includes $2,575,000 of fixed manufacturing overhead; the operating expenses include $270,000 of fixed marketing expenses. A special order offering to buy 50,700 units for $22.00 per unit has been made to Jax. Fortunately, there will be no additional operating expenses associated with the order; however, Jax is operating at full capacity. How much will operating profits increase if Jax accepts the special order?

Reference no: EM13587387

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