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skully skully
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7 years ago
The manager at Total One manufacturing reported a plant capacity of 225,000 units per month. Unit costs at capacity were reported as follows:

Direct materials   $5.00
Direct labor   7.00
Variable overhead   4.50
Fixed overhead   1.00
Fixed marketing costs   7.00
Variable marketing & distribution cost   2.75

The current sales were reported as $190,000 at $31.00 per unit. The manager at Quality Manufacturing contacted the manager at Total One Manufacturing about the purchase of 2,200 units at $25 per unit. Current sales would not be affected by the one-time-only special order. What is the change in operating profit at Total One Manufacturing if the one-time-only special order is accepted?
A) $10,100 increase
B) $10,250 decrease
C) $12,650 increase
D) $14,230 decrease
E) $16,500 increase
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Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
Authors:
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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
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lordingtonlordington
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skully Author
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#2
7 years ago
You make it look easy lol

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
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