What would be impact of the order on net operating income

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Reference no: EM131967364

Problem

Unit cost of a product is $45 as below, and the market price is $60 with the average volume of 1,000 units per year:

Direct materials $12

Direct labor $10

Manufacturing overhead $23

All manufacturing overhead is fixed, except $3 variable. A foreign customer is interested in buying 200 units at $37 per unit as a one-time special order. What would be the impact of this order on the net operating income?

Reference no: EM131967364

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